The Higgs report may go some way to improving corporate governance within business, but many financial directors believe the recommendations within the report could actually damage companies.
The Accountancy Age/Reed Accountancy Personnel Big Question this week asked whether the requirement that half the members on a company board should consist of non-executive directors could impede the entrepreneurial drive of a business. Nearly half of those questioned thought it would while just over a third were dismissive of the idea. ‘You need drive and energy from within the company,’ said one FD. ‘Non-execs should be there to advise and should not be more than half the board.’
Another said: ‘Non-execs are no more impartial than anyone else. They have their own agenda and have no idea about what makes a business tick.’
Some though were not concerned by the overall effect of the Higgs report.
‘The entrepreneurial drive of a business does not necessarily come from the board,’ commented one. ‘It also comes from management, core workers and shareholders.’
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