The DTI has announced plans to examine the role of non-executive directors in relation to auditing and financial reporting.
Trade and Industry secretary Patricia Hewitt said two separate reviews will be undertaken.
She said the move aims to:
- Ensure companies can fulfil their potential and improve productivity
- Strengthen the UK's framework for how companies operate
- Encourage greater transparency.
She said: "Non-executive directors play a key role in British companies by helping to drive up performance. It is in all of our interests that they do their job as effectivily as possible.
"We need stronger, more independent and more active non-executives drawn from a wider pool of talent to play their part in raising productivity."