ACCA has responded to an invitation to comment issued by the House of Commons Business, Innovation, and Skills (BIS) Select Committee.
ACCA welcomes the opportunity to comment on the governance issues identified by the Committee, including directors’ duties, executive remuneration and board diversity.
ACCA supports the principle that the fundamental directors’ duties should be to deliver the long-term success of the company, as defined within the UK corporate governance framework. To tackle with challenges to this principle, ACCA favours transparency and disclosure to facilitate communication with stakeholders and alignment of corporate ethics and culture with the long-term success of the company that in turn facilitate functional behaviour.
ACCA is sceptical of introducing rules and regulations that are unsuited to addressing the diverse range of companies and thus likely to have a limited impact.
In developing this response, ACCA received input from ACCA’s Global Forum for Governance, Risk and Performance as well as internal experts.