Tuesday 29 November 2016

Theresa May To Target Private Firms In Governance Crackdown

Theresay May

Theresa May said she wanted to stop an "irresponsible minority" of private firms acting badly.

The prime minister said the changes would mean "everybody plays by the same rules".

The move follows widespread anger over the collapse of BHS with the loss of 11,000 jobs and a big pension deficit.

The government said the proposed changes would better protect privately owned companies' employees, customers and pension funds from mismanagement.

It is one of a number of measures being considered by the government in its consultation on corporate governance, due to be announced later on Tuesday.

"We have seen an irresponsible minority of privately-held companies acting carelessly - leaving employees, customers and pension fund beneficiaries to suffer when things go wrong," said Mrs May.

Proposals due to be announced by Business Secretary Greg Clark include a bespoke code of practice for the largest private companies who would have to comply or explain why they had not in their annual report.

Private firms will also be expected to report on diversity, greenhouse gas emissions and social and community issues.

The proposals will form part of the government's green consultation paper on corporate governance, which aims to increase public trust in business in the face of the rise in anti-globalisation and anti-business sentiment.



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