Beckett plans tougher rules on corporate governance
The Government yesterday dropped a heavy hint that it planned tougher corporate governance rules, going beyond the recommendations of the Hampel Committee. Margaret Beckett, President of the Board of Trade, said there was a view that the draft report published by Sir Ronnie Hampel, the chairman of ICI, "wasn't sufficiently strong in some respects" and that measures were necessary to toughen and widen its remit.
Addressing the Confederation of British Industry's annual conference in Birmingham, Mrs Beckett said: "We want forms of governance and company law that encourage companies to invest and grow - to take the long-term strategic view and a broad view of their obligations. They should also ensure openness and accountability not least in the relationship between shareholders and managers."
Advisers later played down suggestions that the Government was poised to legislate to oblige companies to invest more. But it was made clear that new statutory obligations, giving shareholders more power, were under consideration.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies