Goldsmith plays down litigation fears

The attorney general Lord Goldsmith has dismissed fears that accountants,

acting as directors,will face greater risk of litigation because of the partial

codification of their responsibilities in the company law reformbill.

He warned,however,accountants and professionals who are appointed
directors should deploy professional competence beyond that of lay
directors.Goldsmith (pictured) said that where an accountant sat on a
board as a non-executive,‘he is not the accountant or the auditor,but he is

expected to bring to bear his general experience,knowledge and skills’.

LordGoldsmith was responding to concern raised by Tory peer Lord Freeman,who
warned that a single shareholder with a single share could sue an individual
director for failing to have acted reasonably in respect of the
impact of a company decision.

Freeman said that a professional director would have to advise to the
same standard as he would in his professional capacity,so an accountant
on the board would be treatedmore harshly because of his expertise.

Related reading