Skip to content

31 May, 2023

Subscribe Advertise About Us
  • My Account
  • Register
  • Log In
  • Log Out

Board Agenda

  • Governance
  • Strategy
  • Risk
  • Ethics
  • News
    • Categories

      • View All
      • Board Moves
    • ESG battle

      ‘Change fiduciary laws’ to end ESG battle in US

      Academics suggest a truce between left and right, based on separating political issues from investment...

    • McDonald's antibiotics News round-up: this week in governance

      Investors challenge McDonald’s over antibiotic use; Norges Bank’s ESG push criticised; diversity box-ticking; revolt at...

    • boost audit Corporate governance code review boosts internal controls

      UK watchdog’s proposals include giving audit committees greater reporting responsibilities and addressing ‘overboarding’.

  • Insight
    • Categories

      • View all
      • Governance
      • Strategy
      • Risk
      • Ethics
      • Board Expertise
      • finance
      • Technology
    • Climate finance

      How climate change alters the financial landscape

      To achieve sustainability, companies and boards will need to look not only to their operations,...

    • generative AI

      Five AI issues to consider right now

      We may not know what AI will mean for us all in the long term,...

    • sexual misconduct

      How to prevent sexual misconduct in your organisation

      Revelations about the CBI may be shocking, but there is no place for complacency and...

  • Comment
      • View all
    • hybrid AGM

      Hybrid AGMs maximise shareholder participation

      Avoid virtual-only annual general meetings: although pragmatic in an emergency, they water down shareholders’ rights.

    • ESG break up ESG: Should E and S break up with G?

      In the world of investing, maturity has revealed significant practical shortcomings in combining environmental, social...

    • controlling shareholders The politics and geopolitics of controlling shareholders

      Shareholders with a controlling interest influence not only financial matters but can also wield great...

  • Interviews
      • View All Interviews
      • Podcasts
      • Webinars
    • information resilience IT transformation sees boards moving to ‘continuous’ management

      Data analytics available on demand requires a resilient—and selective—approach to sharing information, a webinar panel...

    • life sciences podcast Reform of NHS levy ‘harms UK competitiveness’

      Boards in the pharmaceutical and life sciences sector face increasingly difficult decisions, according to a...

    • Board priorities 2023 Board priorities 2023: tact, trust and transparency

      We asked key figures what would help boards this year. The answers ranged from 'smarter...

  • Careers
      • View all
      • Selection
      • Board Moves
    • board survey 2023 Board appointments fell sharply in 2022

      Companies appear to be sticking with experienced leaders—to the detriment of progress—suggests FTSE 350 boardroom...

    • diversity statistics Diversity statistics challenged by new scorecard

      Companies can ‘hit the target, but miss the point’, say academics researching a more ‘holistic’...

    • CEO turnover CEO turnover rises steeply

      The researchers say political changes and business difficulties may have accelerated turnover, which has risen...

  • Resource Centre
      • White Paper Downloads
      • Book Reviews
      • Corporate & Advisory Services
    • Mazars c-suite 2023

      Mazars C-suite barometer 2023

      The Mazars C-suite barometer is based on responses from more than 800 C-suite executives from...

    • CFO Career Survey Report

      Our survey, in December 2022, of almost 200 CFOs across the public, private and non-profit...

    • The Engagement Appeal: The Path to Inclusive Investor Engagement

      The Engagement Appeal: The Path to Inclusive Investor Engagement

      The Path to Inclusive Investor Engagement highlights the need for greater engagement between companies and...

  • Events
  • Search by topic
    • Governance
    • Strategy
    • Risk
    • Ethics
    • Regulation
    • ESG
    • Investor Relations
    • Selection
    • Board Expertise
    • finance
    • Technology

Directors could be struck off for failing to protect pensions, says PM

by Gavin Hinks on May 3, 2017

Directors could be fined or struck off if they fail to protect pension schemes, according to a policy announcement by prime minister Theresa May.

Theresa May, prime minister

Image: Shutterstock

The behaviour and ethics of company directors moved centre-stage in the UK general election yesterday, when prime minister Theresa May announced plans to protect pensions from “irresponsible” bosses.

Directors found to have left a scheme under-funded could face fines or be struck off.

May said that in future, companies involved in a takeover or merger will have to tell the country’s pensions regulator, which will “apply certain conditions”.

A statement from the Conservative Party said the regulator could be given new powers to block takeovers if the companies involved fail to provide assurances for the future of pension schemes.

The Conservative Party said: “Under our plans, any company pursuing a merger or acquisition valued over a certain amount or with over a certain number of members in the pension scheme would have to notify the Pensions Regulator, who could then apply certain conditions.

“In cases where there is no credible plan in place and no willingness to ensure the solvency of the scheme, the Pensions Regulator could be given new powers to block a takeover. This would include the power to issue punitive fines for those found to have willfully [sic] left a scheme under-resourced.

“If fines proved insufficient, the company directors in question could be struck off for a period of time and a new offence could be introduced to make it a criminal act for a company board to intentionally or recklessly put at risk the ability of a pension scheme to meet its obligations.

“In short we will tighten the rules on pensions during takeovers, and increase punishments for those caught mismanaging schemes.”

The policy follows the collapse of high street retailer BHS, which went into administration in 2016, leaving pension liabilities of £571m.

Philip Green, the retail entrepreneur, sold BHS the previous year for £1 to new owner Dominic Chappell, owner of Retail Acquisitions. Green faced heavy criticism for the sale and management of BHS, and in February agreed to contribute £363m to the BHS pension scheme.

 

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • Mail

Related Posts

  • EuropeanIssuers calls for EU law to apply to 'third country' companies
    December 17, 2021
    EU flag

    The proposal raises the possibility of the Corporate Sustainability Reporting Directive being applied to UK firms trading online in the EU.

  • Directors need to ‘up their game’ on ESG strategy
    April 4, 2022
    Board members looking at corporate reports

    Study says 70% of board directors say they are “not at all” or only “moderately“ effective at integrating ESG concerns into company strategy.

  • It's time for boards to make new resolutions on ESG performance
    January 19, 2022
    Woman running up steps

    Recognition that significant change is needed and determination to drive progress are vital if boards are to improve sustainability.

  • Board priorities 2022: a checklist for directors
    January 12, 2022
    notebook on boardroom table

    The pandemic continues to impact agendas, but climate, data security and succession are some of the other priorities demanding board focus.

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

BHS, Dominic Chappell, General election 2017, pensions, Philip Gr, Theresa May

Search


Sign up to our Newsletter

Receive independent news, thoughtful journalism & expert insights about leadership, corporate governance & key boardroom issues straight to your inbox every week.

SIGN UP

Follow Us

 

 

 

 

Most Popular

  • Corporate governance code review boosts internal controls
  • News round-up: this week in governance
  • New audit committee standards finalised
  • ESG: Should E and S break up with G?
  • Dual class shares have become ‘dual class stock lite’

Featured Partner Profile

Diligent

Diligent

Diligent Corporation, which was founded in 2001, is headquartered in New York, NY with a European HQ in London. Diligent’s modern governance platform empowers leaders and teams at every level of the organisation to digitally transform and create ...

Featured Partner Resources

The Engagement Appeal: The Path to Inclusive Investor Engagement

The Engagement Appeal: The Path to Inclusive Investor Engagement

This is the inaugural white paper from The Engagem...

Stakeholder Engagement: A Roadmap for UK Plc Boards

This guide aims to provide directors and their col...

Digital Boards: How Technology Adoption is Driving Culture Change and Resiliency

Digital tools proved their worth to boards during ...
Leadership in AI report

Leadership in AI

This report from Board Agenda and Mazars, in assoc...
Director's Guide to Internal Investigations

A Director's Guide to Conducting Internal Investigations

An internal investigation must be handled meticulo...
 

ADVERTISE – FREE CORPORATE LISTING

FREE - Add your company profile to our Corporate & Advisory Directory.
ADD

ADVERTISE – PROMOTE YOUR REPORTS & WHITEPAPERS

FREE - Add your company profile to our Corporate & Advisory Directory.
Add Resource

Register Free

Register to receive free article views, selected resource downloads, and all the latest news alerts straight to your inbox. Register


  • Editors & Contributors
  • Editorial Advisory Board
  • Corporate & Advisory Services
  • Media Marketing Solutions
  • Contact Us
  • Careers
  • Board Director Network
  • Terms & Conditions
  • Privacy Policy
  • Cookies
  • Sitemap
|