Towards Better Engagement: Guidance for IR Practitioners on the UK Governance Code

LONDON, March 30, 2010 - Many companies are today guilty of prosaic, tick the box compliance
reporting with the UK Governance Code. To help public companies move beyond
this, and meet the spirit of the new Governance Code from the Financial
Reporting Council, the Investor Relations Society (IR Society) has created a
Good Practice Guide, now open to consultation.

Investor engagement is at the heart of the proposed new Governance Code
creating new 'comply or explain' obligations. It places great emphasis on
improved communication between companies and their institutional investors,
while the proposed Stewardship Code creates obligations on investors to
engage with those companies whose shares they own. Boards of public companies
are encouraged to provide regular and meaningful access, and to expand
disclosures around how they have done so.

Mark Hynes, Chair of the IR Society's Policy Committee said "The FRC
Governance Code stops short of saying "how" this engagement should work. So
with help from leading in-house IR and governance professionals, the Society
has created practical advice on how to achieve best practice. This includes
advice on two-way communication between boards and their IR teams, involving
IR in the corporate strategy processes, the increasing influence of proxy
advisors, the use of web communications, and reporting on investor contacts
and concerns."

Commenting, Richard Davies, Chairman of the IR Society said "Whatever the
rights and wrongs of the heated 'stewardship' debate, companies will always
need to engage with institutional investors. The wider issue is how to
achieve best practice, so the IR Society has today launched a consultation
paper on how to improve such communications".

The Good Practice Investor Relations Guide is open to consultation until
the 7th May 2010. Comments on the proposed Guidance set out in this
consultation document are requested by 7th May 2010. Responses should be sent
by e-mail to: Michael.Mitchell@IRS.org.uk or in writing to, Michael Mitchell,
General Manager, the Investor Relations Society, 3 Bedford Street,
London.WC2E 9HD.

It is the IR Society policy to publish on its website all responses to
consultations issued by the Society unless the respondent explicitly requests
otherwise.

The Consultation Paper and details on how to reply can be accessed here
www.irs.org.uk/index.asp?pageid=274

Notes for editors.

The Investor Relations Society represents members working for public
companies and consultancies to assist them in the development of effective
two way communication with the markets and to create a level playing field
for all investors. It has nearly 600 members drawn both from the UK and
overseas, including the majority of the FTSE 100 and much of the FTSE 250.

    Investor Relations Society Contacts:
    Michael Mitchell, General Manager +44(0)20-7379-1763
    or
    Mark Hynes, Chairman, Policy Committee +44(0)7957-430333
   (mark@transparencymatters.co.uk)

Investor Relations Society Contacts: Michael Mitchell, General Manager, +44-(0)20-7379-1763 or
Mark Hynes, Chairman, Policy Committee, +44 (0)7957-430333, (mark at transparencymatters.co.uk)