The proposed bill, which has the backing of the Tory leadership, would allow companies to override contractual obligations made to directors if they underperform, who are then sacked.
Writing in today’s FT Mary Francis, director general of the Association of British Insurers and Christine Farnish, chief executive of the National Association of Pension Funds, said the bill contained no definition of the word ‘failure’ nor would it be easy ‘to ascribe responsibility for failure to any one person’.
They also claimed any executive affected by the bill would stand a good chance of reversing this position through an appeal in court, setting a legal precedent confirming directors’ rights.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements