Omission of commission to review business legislation is "fatal flaw".
Position | Pensions Investment Research Consultants - Brief article |
A leading shareholder pressure group is calling on the government to set up an independent body to keep corporate law under close scrutiny.
Pensions Investment Research Consultants (Pirc) is disappointed that the Department of Trade and Industry has rejected the proposed creation of a commission to review company law and reporting in its forthcoming company law reform bill.
Pirc's managing director, Alan MacDougall, said that the absence of an independent authority to keep company law under review and arbitrate on legal matters was a "fatal flaw" in the bill, and that the group would lobby the government to reintroduce the idea.
"Company law reform is vital to improving corporate governance for companies and investors. An independent commission would play an important part in any new legislative framework," he said.
Among other changes, the company law reform bill aims to increase shareholder engagement and promote a culture of long-term investment. The government has also responded to intense lobbying by the big four accountancy firms by...
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