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Latest News

CBI applauds corporate governance goals

by Personnel Today 24 Jul 2003
by Personnel Today 24 Jul 2003

The
CBI has welcomed changes to the Higgs proposals on corporate governance as
"a victory for common sense".

CBI
chief Digby Jones praised the Financial Reporting Council (FRC) for addressing
all the major concerns of business and achieving a new consensus on changes to
the boardroom rulebook in its new code published yesterday.

The
Combined Code on Corporate Governance was drawn up to improve boardroom
performance and accountability. Jones said the new code would strengthen boards
and bolster the reputation of business.

The
CBI had voiced concerns that changes proposed by Derek Higgs in his
government-commissioned report on non executive directors, published earlier
this year, would be overly prescriptive, undermine chairmen and threaten
boardroom unity.

Jones
said: "This is a victory for common sense. The FRC has delivered a code
that will encourage better corporate governance but not have damaging
unintended consequences.

"The
amendments make clear that ‘comply or explain’ should not mean ‘comply or else’.
They ensure that the role of the chairman will not be undermined and
debilitating boardroom divisions will not be created.

By Ben Willmott

Avatar
Personnel Today

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