IoD defends UK corporate controls
The Institute of Directors is warning ministers against making 'knee-jerk' reactions in response to American corporate scandals and a shake-up in US financial reporting.
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Following a survey of 200 of its members, the IoD refutes allegations that the UK corporate governance system needs a shake-up.
George Cox, director general of the IoD, told the FT: ‘It may sound complacent, but there is no chance of a scandal like Enron or WoldCom happening here.
‘I’m not saying we won’t have problems, but we have a different corporate culture and we don’t have the same gung-ho mentality.’
The institute will put forward its case next month in a public submission to Derek Higgs, a former investment banker, who was chosen by the government to review the role of non-executive directors in the wake of the collapse of Enron.
A spokesman for the IoD said however that the body does support proposed reforms to corporate governance outlined in a white paper on modernising company law following a three year consultation period.