ABI warns directors to be forward looking
No tolerance for directors who fail to provide forward looking statements in company reports
The Association of British Insurers has warned that if safe harbour
provisions are included in the company law reform bill, it will not tolerate
directors who fail to provide forward-looking statements in company reports.
At an ACCA briefing last week, Peter Montagnon, director of investment
affairs at the ABI, said that government had welcomed the organisation’s
proposals to include safe harbour provisions in the company law reform bill, so
that directors could make forward looking statements without the fear of
litigation.
‘The ABI has stuck its neck out and we must now have the other side of the
deal. We need reporting of the highest standard that goes beyond the bare
minimum in return,’ Montagnon said.
But Ken Lever, finance director of Tomkins, said companies remained
concerned. ‘The problem is that the way information is used is not always what
you bargained for,’ he said.