UK business body says directors need extra code of conduct

Carillion

25/10/2023 15:35

LONDON, Oct 25 (Reuters) - Britain's Institute of
Directors (IoD) said on Wednesday it has launched a commission
to draft a voluntary code of conduct for directors to improve
standards after the collapse of builder Carillion and retailer
BHS eroded trust in business.
    The commission, headed by former Labour Party general
secretary Iain McNicol, will run to March 2024 and report its
findings a month later, the IoD said in a statement.
    "Directors make key decisions across a variety of
organisations, and it is essential that they are seen as both
competent and ethical actors," said IoD Director General
Jonathan Geldart.
    Britain already has a Corporate Governance Code, currently
being updated, that covers the conduct of directors and is 
enforced on a "comply or explain" basis by the Financial
Reporting Council (FRC), which had no immediate comment on the
IoD initiative.
    The IoD said its code would be distinct from the FRC code or
the legal duties of directors under UK companies law, which
typically focus on large listed companies, rather than on
individual conduct and behaviour.
    "A code of conduct would, therefore, be complementary to the
existing governance code framework and directors’ fiduciary
requirements," said Roger Barker, IoD director of policy and
governance.
    IoD said board members across UK business would be asked to
sign up to the code on a voluntary basis.
    

 (Reporting by Huw Jones; Editing by Sharon Singleton)
 ((huw.jones@thomsonreuters.com; +44 207 542 3326; Reuters
Messaging: huw.jones.thomsonreuters.com@reuters.net))