Non-execs could see number of roles limited
The man appointed to review the role of non-executive directorships in the UK has said that there will be no root and branch reform of the system.
Veteran investment banker Derek Higgs, whose work on the review is close to completion, did however say that there could still be some significant changes, although in principal it was agreed that corporate governance in the UK was sound, the FT reported.
Possible changes that could be recommended include limiting the number of non-executive directorships one person can hold to five, increasing responsibilities for non-execs, introducing fresh blood and exposing them to the same legal risks as their executive counterparts.
Other proposed measures include formalising recruitment procedures, the introduction of a national register for directors and the compulsory advertising of non-executive positions.