41.Part I and Schedule 1 set out, amongst other things, certain requirements of the Authority’s constitution.  The effect of this section is to require the Authority to have regard, subject to those requirements, to such generally accepted principles of good corporate governance in managing its affairs as it is reasonable to regard as applicable to it.  Such principles might include those contained in the Combined Code of the Committee on Corporate Governance.  However, some principles, such as relations with shareholders, are not relevant to the Authority as it is a company limited by guarantee and so need not be taken into account.
Commentary on Sections Part I: the Regulator Section 7: Duty of Authority to follow principles of good governance