Campaign urges reform of section 172 to promote ‘purpose of the company’
John Lewis, Innocent and the Institute of Directors are backing the Better Business Act campaign to make purpose central to section 172.
Image: Mariakray/Shutterstock
Campaigners, among them big business names such as John Lewis and Innocent Drinks, have launched a project to reform section 172 of the Companies Act and overhaul the fiduciary duties of board directors.
Currently, section 172 gives directors a first duty to promote the “success” of companies; draft legislation from the Better Business Act campaign changes that to promoting the “purpose of the company”.
If successful the change has the potential to “transform” the way businesses are run, according to Green MP Caroline Lucas. She says: “The act will help unlock the transformative change we need in a really tangible way. And
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