Companies: Corporate Governance
The question
To ask the Secretary of State for Business and Trade, what assessment he has made of the potential merits of implementing the proposals of the Better Business Act campaign.
Answered by Justin Madders
The Better Business Act campaign seeks changes to Section 172 of the Companies Act 2006 to provide for company directors to deliver benefits to shareholders, society and the environment. Section 172 already enables companies to amend their articles of association to provide for this purpose, or any other corporate purpose. Section 172 also requires directors to have regard to a range of interests, including those of employees and the community and the environment. Large companies must report each year on how this has informed their directors’ decision-making. Therefore, the Government has no plans currently to amend Section 172.
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