Did you know that the Companies Act (2006) has existed for 20 years?
- A vast amount of progress has been made in that time, across all industries, cultures, you name it.
- However, the problem is that alongside these changes, the Companies Act has remained its samey 2006 self.
A few months ago we delved into the Better Business Act and who they are (The BBA).
- This June, we will see the BBA in action as they go to Parliament and demand an update to Section 172 of the Companies Act.
Source: Start a Fire
What can you do?
- Write to your MP to encourage their presence in Parliament in June. The more present, the better.
- WRITE HERE!
But wait…What is Section 172 of the Companies Act 2006?
Fear not, here’s a quick reminder…
- This Act ‘requires a director of a company to promote the success of the company for the benefit of shareholders’ whilst considering:
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- Long term consequences
- Company employees’ interests
- The need to ‘foster’ the company’s business relationships
- Community & environmental impact from company operations
- ‘The desirability of the company maintaining a reputation for high standards of business conduct’
- ‘The need to act fairly as between members of the company’
Source: The QCA
Why is this important?
- What was relevant in 2006 as being a feasible required consideration within Section 172 is likely too loose a commitment in today’s times.
- If we want to ensure business frameworks are taking their environmental impacts sufficiently into consideration, perhaps we need more prescriptive requirements within Section 172, to ensure clear accountability for all directors.
