Higgs calls for balanced boardroom approach
Derek Higgs, the banker behind the new set of UK corporate governance rules, says company boards must strike a balance between supervision and control.
Link: Higgs report special
In a letter written to the FT Higgs said readers of his report would ‘look in vain for any suggestion that the board’s “primary job is one of policing management”‘.
Rather he referred readers to the first line of report, which says that the board is ‘collectively responsible for promoting the success of the company by directing and supervising the company’s affairs’.
In response to an article by professor Sumantra Ghoshal of the London Business School, titled: Boardrooms need advisers not policeman, Higgs said the boardroom role was not an either/or position and said his review moved away from a tension between the two roles and stressed the complimentarity of the two roles.