Corporate Governance and AIM

July 2008

Much has been written in the past with regards to the quality of corporate governance procedures within AIM companies.

The key observations from this report are:

• The governance procedures adopted by AIM companies vary widely and that good governance is not necessarily a function of size of the company or its location
• Few companies have independent non-executive director representation on the board
• Few companies actively review the effectiveness of their boards
• AIM companies can differentiate themselves in terms of quality of their business practice and reporting to shareholders.

This report illustrates how companies are responding to the challenges and provides recommendations for best governance practice.