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Companies: Directors

Asked by Alex EastonIndependentDepartment for Business and TradeTabled Answered 22 June 2026UIN 10048

The question

To ask the Secretary of State for Business and Trade, whether the Government has plans to review Section 172 of the Companies Act 2006.

Answered by Blair McDougall

Section 172 of the Companies Act 2006 places a legal duty on directors to have regard in their decision-making to the interests of employees, and to the impact of the company’s operations on the community and the environment. It also requires directors to consider a range of other factors, including the long term consequences of any decision.. The government has no plans to review this important legal duty.

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