News In Focus
General counsel group produces guidance for company directors
Guidance for company directors has been produced by the organisation representing the heads of legal at Britain's leading companies, in response to a request from the UK Government.
GC100, the association of general counsel and company secretaries working in UK FTSE 100 companies, has published guidance on the practical interpretation of s 172 of the Companies Act 2006, which imposes a duty on directors to act in the way they consider most likely to promote the success of their company for the benefit of its members as a whole.
It follows an invitation from the Department for Business, Enterprise & Industrial Strategy (BEIS) to produce this guidance as part of a wider series of measures being taken by the Government to improve the UK’s corporate governance framework.
Commenting on the publication of the guidance, Business Secretary Greg Clark said: "We have a strong, internationally respected reputation for our business environment and as a dependable place in which to do business, based on our legal system, company law and corporate governance frameworks.
"The UK has maintained this reputation by always being prepared to review and upgrade our rules and standards to ensure we remain a dependable place to do business. The guidance and measures set out today by GC100 will help drive improvements in boardrooms, delivering better business performance and building public confidence in the way businesses are run."
Alan Porter, chair of GC100, added: "As they make decisions and choices, it is good business sense that directors need to think not only about shareholders’ interests, but also about other factors which will affect the success of the company. This guidance offers practical help to company directors to make discharging this legal duty easier."
Click here to access the guidance.