Professional negligence claims to be reduced by new corporate governance code?

Published on 1 Jun 2010 under category: legal

Professional negligence claims could go down following the introduction of a new corporate governance code.

Professional negligence claims could go down, following the publication of new guidelines on corporate governance.

The government has welcomed the new code from the Financial Reporting Council.

Measures in the revised rules include the annual re-election of company directors, as well as the promotion of diversity in the workplace.

The moves are intended to kick-start an accountability culture in the financial services industry.

All listed companies will be required to follow the procedures set out.

This could mean that there are fewer professional negligence claims, as company directors are forced to become more hands-on in their roles.

Commenting on the publication, business minister Edward Davey said: "Corporate accountability and transparency is integral to rebuilding public trust in the corporate sector and today's new corporate governance code marks an important step towards rebuilding that trust.

"These new measures will help to encourage companies to play their part in working towards the creation of a more responsible, fair and transparent corporate society."

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