Institute of Directors calls for extra policing of Directors
Following a report by two parliamentary select committees about the collapse of Carillion, the Institute of Directors (IoD) has called for a new directors’ watchdog in policing the major directors of companies above a certain threshold.
The proposal calls for directors of major companies to sign up to a code of conduct and their failure to adhere to it could instigate, in extreme cases, recommendations to the Department for Business, Energy and Industrial Strategy for directors to be struck off. Under this proposal, a business led Professional Standards Board for Directors would be responsible for policing the directors and investigating cases where a director has breached the code.
The Institute of Directors has called for an examination into the creation of a new ‘Framework of Professional Conduct and Competency’ for board members of significant corporate entities. The new body would oversee the directors of major companies and hold them to a code of conduct, examining cases where directors have failed to adhere to it.
It is believed that the business led, Professional Standards Board for Directors’ range of powers would give them the ability to police the code and inspect cases aiming to restore the public’s trust in businesses.
The framework would require directors that sign up to adhere to the Code to undertake a targeted programme of continuing professional development. It is hoped this will help directors with their increasing responsibilities in a highly regulated and complex business environment.
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Posted on: 12/07/2018
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