In the months following our submission in response we developed further the proposal in the letter to the Prime Minister in January from the Institute of Directors, the TUC, the ICGN (international Corporate Governance Network) and ICSA representing Company Secretaries that she should “create a mechanism which allows those whose interests should supposedly be protected by the law to make complaint and find an appropriate remedy” and “ensure investors and stakeholders are involved in the governance of that mechanism”.
We had the opportunity before the General Election to discuss this with the Prime Minister’s staff who in turn directed us towards the Department for Business, Energy and Industrial Strategy to secure their support. Our paper recommends a mechanism in line with the call from the major stakeholders in UK plc, in the form of a Commissioner for Corporate Governance.
The proposal would provide a means for addressing complaints and shortcomings in governance in companies. Furthermore, it would demonstrate to companies, company directors and the general public the commitment of the Government to ensuring that companies consider the wider interests of stakeholders such as minority shareholders, employees, suppliers, customers, and local communities.
A General Election has been called so all is on hold. Subject to its outcome, we look forward to engaging with the Department.
To read a copy of the proposal click here: A Commissioner for Corporate Governance