NAPF embraces law review
The Company Law Review Final Report has been highly praised for stating the main role of company directors is to support the interest of shareholders.
The National Association of Pension Funds was commenting on the new measures recommended by the review which propose that directors’ duties be clearly set out in the Companies Act.
It also asks for better disclosure of directors’ training and qualifications and that their contract of employment be limited to three years when first appointed and to one year for reappointments.
The report also advises a Companies Commission be created to monitor the state of company law.
David Morgan, chairman of the NAPF working party on the review, said company law was in ‘urgent need’ of modernisation.
He said: ‘We need a business friendly framework which strips away red tape and allows firms to operate effectively.
‘We particularly welcome the proposal for a Companies Commission to ensure that this modern approach to company law is maintained and strengthened if necessary.’
The report also proposed the audit threshold be lifted to £4.8m.
