A new corporate governance code has been released by The Financial Reporting Council (FRC), with the aim of improving the public’s trust in business.

A product of extensive consultation, the changes, which will apply from the beginning of 2019, include banning senior executives from selling shares awards for five years (rather than the current three years), and encouraging firms to improve how they engage with staff.

The FRC's new provision won't amount to a mandatory or rigid rule and it will be left to board members to implement on a comply-or-explain basis.

Sir Win Bischoff, chairman of the FRC, said:

“Corporate governance in the UK is globally respected and is a framework trusted by investors when deciding where to allocate capital. To make sure the UK moves with the times, the new Code considers economic and social issues and will help to guide the long-term success of UK businesses.This new Code, in its new shorter and sharper form, and with its overarching theme of trust, is paramount in promoting transparency and integrity in business for society as a whole.”

Greg Clark, business secretary, said:

“These changes will drive improvements in how boardrooms engage with employees, customers and suppliers as well as shareholders, delivering better business performance and public confidence in the way businesses are run.”

Read more: BBC Business and the FRC