RegulationCorporate GovernanceNetwork Rail governance shake-up urged

Network Rail governance shake-up urged

Influential member urges corporate governance overhaul at railway maintainance company after New Year's chaos

Network Rail could undergo a governance overhaul if sweeping proposals get
the go-ahead.

Lord Berkeley, one of the 118 members of the privately-owned company issued a
letter calling on his peers to force through a corporate governance revamp after
rail services were crippled at the start of the year as engineering works
finished late.

In the letter, Lord Berkeley said: ‘If NR were structured like most private
sector companies, its shareholders might have something to say.’

Although the 118 members of the not-for-profit business have powers to remove
executives and reject annual accounts, they are elected by the company itself.

Lord Berkeley added: ‘In other words, one can argue that there is a
democratic deficit in the corporate governance structure of NR.’

Network Rail told
The
Times
that it had a ‘vigorous selection process in place to ensure the
highest calibre people become members.’

Further reading:

Corporate
governance: Tall story

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