Company lawyers turn against Higgs
The heavily criticised Higgs report on corporate governance has come under fresh attack from company lawyers who have labelled it a 'knee-jerk response'.
Link: Higgs’ special report
More than half of lawyers heading up legal departments at UK companies thought Higgs was a ‘knee-jerk reaction to the Enron accounting scandal’, a survey found.
Worryingly, one-in-three said they believed the corporate governance recommendations would actually make things worse.
The survey, carried out by Legal Director magazine found that, found a generally pessimistic outlook on corporate governance, with four-in-five lawyers saying abuses would happen, regardless of regulations, because of the ‘nature of business’.
On a brighter note, nearly two-thirds of lawyers surveyed said they believed corporate governance was better in the UK than in the US, while 47% believe a major scandal was far more likely to happen across the pond than in the UK.