Directors' Responsibilities to be Extended: government consultation closed

Following the corporate governance failings in the collapse of a number of high-profile businesses (such as Thomas Cooke and BHS, to name two), the BEIS has published a report and proposals to consult on extending and tightening corporate governance and audit obligations, including the following: -

• Placing greater responsibilities and accountability on Company Directors for internal controls and compliance systems and reporting and review of the same:
• Clawbacks of Directors’ bonuses after a Company collapses: and
• A new specific regulator too.

The proposals are being considered to apply to ‘larger’ businesses but these aren’t actually so large and thus, under the proposed definitions being considered (depending on which definition is adopted), between 1000 to 2000 UK businesses could be caught by the new proposals presently under consultation. We will provide an update for Directors when the proposals are brought forward by the Government.