FRC proposes new enforcement powers over all Directors and a consumer style "super-complaint" system for stakeholder action against Directors

Published 25 May 2017

The Financial Reporting Council has recently published its response to the Department for Business, Energy and Industrial Strategy, Corporate Governance Reform Green Paper. The FRCs response proposes wide-ranging powers be given to the FRC for oversight of all Directors. Should the proposals be adopted it could potentially mark the beginning of a shift towards creating a professional role of "Company Director". The proposals for a system of redress making it easy for stakeholders to bring claims directly against Directors would greatly increase the potential liability for Directors.