The Financial Reporting Council ("FRC") has published a report looking at developments in corporate governance in 2011 and the impact of the UK Corporate Governance Code and the UK Stewardship Code. In relation to the Governance Code, the report notes: (i) implementation by listed companies has been good with compliance with most of the Governance Code’s provisions by companies of all sizes; (ii) boards are overseeing the main risks facing the business; (iii) where companies deviate from the Governance Code, the majority of them only do so in respect of one or two of its 48 provisions and clearly state reasons for doing so. In relation to the Stewardship Code, the report notes: (i) there are mixed signals as to whether the Stewardship Code has had an impact on the quality of engagement. Companies have reported that they have not seen any notable increase in the number of investors wishing to engage with them; (ii) some investors believe that the Stewardship Code is not as clear as it should be on the role of owners and that a better articulation of what is meant by ‘stewardship’ is needed; and (iii) the FRC intents to consult on proposals to amend the Stewardship Code.