Tag: directors’ duties
What is ‘independent judgment’—and how should board directors use it?
Directors are obliged to exercise independent judgment in their decision-making. But there is little guidance on what this means in practice.
Changes to company law would enable use of ‘robot directors’
Researchers say that the use of artificial intelligence on boards “is possible with minor reconsiderations to the current legislation”.
Directors’ duties: more enforcement needed to drive action on climate
Directors have a “fiduciary duty” to consider climate change risks, say experts—but legal action is unlikely unless enforcement is beefed up.
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.
Audit white paper proposes new powers for regulator to sanction directors
Observers warn that proposals to increase the accountability of directors for audit and internal controls could deter candidates.
‘Future generations’ clause in section 172 could boost sustainability
Researchers argue a “system change” in favour of sustainability needs stronger regulation to hold directors to account.
The Secret NED: Clinton, company email and a confidentiality dilemma
I’ve been using my private email for company business. Will there be calls to “lock me up”—even if I’m actually protecting my best interests?
Governance experts call for US Stakeholder Capitalism Act
The proposed Act would give directors and investors revised fiduciary duties “that extend beyond responsibility for financial return”.
Worker directors: what to consider when appointing employees to boards
Worker directors provide a direct link between the board and employees—and new perspectives on a business. But the move is not without its challenges.
Companies Act duties ‘need testing in the courts’ to improve governance
Sections 171 and 172 can support the shift to stakeholder capitalism, says Professor Bob Garratt—but only if they are taken seriously and enforced.