Other key recommendations include increasing diversity on boards, a limit of nine years for trustee terms unless a good reason is given, more oversight of subsidiaries and a stronger emphasis on the role of the chair. Full details of the code are available on a new website.
The code is overseen by a steering group of charity umbrella bodies comprised of the Association of Chairs; Acevo; ICSA: The Governance Institute; NCVO; the Small Charities Coalition; and the Wales Council for Voluntary Action, and with an independent chair, Rosie Chapman.
Consultation on changes to the code, which was previously called the Code of Good Governance, began last year and received over 200 responses. Work on the code was funded by the Barrow Cabury Trust and the Clothworkers Foundation. The Charity Commission has withdrawn its Hallmarks of an Effective Charity guidance in favour of directing people to the new code.
Chapman said: “The code for the first time sets out clear aspirations for a charity board to meet. This code is a great stepping off point to help charities navigate the changes. It will be an essential tool for charities to use and will greatly assist them to develop and grow in their effectiveness.”