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The Forum of Private Business (FPB) has warned that directors will be left
“looking over their shoulders” after the House of Lords failed to recommend
amendments to directors’ duties set out in the Company Law Reform Bill.
The group, which represents more than 25,000 SMEs, believes the responsibilities
outlined in the Bill are too vague.
The FPB’s National Chairman, Len Collinson, explained: “It is right that
directors’ duties should be spelt out, but they are not clear enough as they
stand.
“The legislation says that directors should give regard to employees, suppliers,
customers, impact on the community and the environment. They must also maintain
a reputation for high standards of business conduct.
“The current wording will leave the door wide open to those with an axe to
grind.
“Whilst we welcome moves to redress the balance of Company Law in favour of
small business, this Bill does not go far enough.”
There has been concern expressed that adults may be registering children as
company directors to avoid liability, prompting calls for a minimum age limit of
16 for directors to be introduced.
Source:
Credit
Control Journal
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