UK governance needs radical overhaul to make business ‘purposeful’
Think-tank issues 22 recommendations calling for change to governance, asset managers and accountancy.
Photo: Shutterstock
Governance in the UK needs a radical overhaul with company law, accounting systems, the investment industry, shareholder structure, and executive remuneration all in need of significant change.
The recommendations come in a report from The Purposeful Company Task Force, a project set up by think-tank the Big Innovation Centre, and includes 22 changes which the report claims are necessary for the UK to lift investment, living standards and innovation.
It urges companies to state precisely "their role in the world from which profit results" in their article of association, and recommends that directors should publicly report on how they
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda
Related Stories
-
Belgium drafts revised corporate governance code
It is hoped that a revision of the Belgian corporate governance code will help the code to "remain relevant" to Belgian-listed companies and help them to "create long-term value".
-
Redrow chairman slams mega-payout for Persimmon CEO
A bonus scheme for Persimmon's CEO and senior managers has been heavily criticised by Redrow chairman Steve Morgan, who claims that it is "very, very wrong".
-
Decrease in CEO pay variation blamed on ‘reciprocal benchmarking’
Chief executive pay deals in the US have begun to cluster around the same levels regardless of the size or profitability of the firms involved.
