Report calls for more powers for non-execs
Non-executive directors require more powers to meet the increasing demands of corporate governance legislation, according to a new report.
A survey of 100 UK executive directors by law firm Eversheds found that more than half felt their non-executive counterparts were at a disadvantage in identifying and managing risk.
Eversheds concluded that current corporate structures meant that non-execs were only able to access information that was fed to them by the executives – as a result were not close enough to the business and were only told what executives wanted them to know.
The report also revealed that executives are more worried about red tape, liquidity and their own personal risk than about corporate governance and managing shareholder expectations.