In November 2003, the revised Combined Code of corporate governance came into force following a revamp in the wake of the UK government-sponsored Higgs Report on the role and effectiveness of non-executive directors. Although there were some concessions, the majority of the recommendations put forward in the report, which was led by the former investment banker Sir Derek Higgs, were incorporated. Among the changes to the Code are the recommendation that at least half the board should comprise non-executive directors and that a chief executive should not go on to become chairman of the same company.

Although the original Higgs Report received a mixed reception when it was first published in January 2003, it is now evolving as its author had hoped. "I am comfortable that it has moved things forward in the right direction," he says. "The changes to the Combined Code are incremental and never needed to be a work of radical revolution. Things that were not on the agenda, both inside the boardroom and outside with shareholders and constituencies, are now being discussed. The Code is prompting sensible questions to be asked."