Only 16% of companies are fully compliant with corporate governance requirements, while almost half have no formal whistleblowing policy, a survey of general counsel revealed last week.

Based on votes cast at an Economist conference for corporate counsel, the survey of more than 100 delegates showed that no more than one-fifth of general counsel have a code of ethics or compliance programme in their firms, while only 14% have an insider trading policy. Just 7% conduct periodic legal audits.


Some 73% of general counsel said there was a need for compliance reporting to the board by in-house or external legal advisers, but only slightly more than half said a report took place. Survey author David Mandell, a partner at McGrigors' City office, said: 'It is surprising that so many firms do not have a whistleblowing policy in place when this is such a big risk issue. Some of the major corporate episodes in recent times have involved a serious breach where no one has been able to identify it.'


Almost one-third of general counsel (29%) also considered that their companies' boards did not have the right balance between executive and non-executive directors to ensure a productive partnership between the board and senior management. Only half said they have the right balance, with 21% unsure.