IFB Responds to BEIS Select Committee Corporate Governance Report
5th April 2017
The Business, Energy and Industrial Strategy Select Committee has today published its report on Corporate Governance in UK business.
Responding to the report, Institute for Family Business Executive Director Elizabeth Bagger said:
“We are pleased to see the Committee emphasise the need for a measured and proportionate approach to corporate governance. Families care about having a business which is well governed, to ensure that it is viable and sustainable in the long term.
“We are also pleased to see the Committee recognise the importance of ensuring the unique characteristics of private family businesses are taken into account in this work, and the importance of a light touch approach which avoids damaging the ability of family businesses to grow and invest.
“Family businesses have an in-built natural tendency to approaching corporate stewardship in ways that ensure that the pursuit of good financial performance supports their long term objectives and values, rather than harming them.
“As part of their review of Corporate Governance we have called on the Government to focus reforms on actions which will improve culture and embed genuine engagement and good governance in all businesses, rather than introducing additional significant burdens without preventing future failings.”
On the issue of extending Corporate Governance for the largest privately held companies, the Committee included the following recommendation:
“We recommend that the Financial Reporting Council, Institute of Directors and Institute for Family Business develop, with private equity and venture capital interests, an appropriate Code with which the largest privately-held companies would be expected to comply.”