In the UK, companies can expect to be watched more closely in the future By the organizers. This is evidenced by the words of British Economy Minister Coase Quarting, when announcing an analysis to be made in the coming weeks about the oversight of British business. Observers reported the strongest business policy change in the UK in several decades.
Failed business leaders can be more easily compelled by review to return bonuses and other benefits received in the future. The measures must also ensure that the dominance of the Big Four accounting firms is broken.
“Over the past few decades, the UK business community has faced some serious failures,” the British Guardian newspaper wrote. An example in recent years has been the bankruptcy of British home stores (BHS), Carillion and Thomas Cook.
Martin Callanan, Britain’s Secretary for Corporate Social Responsibility, argued in a comment that the reforms would mean both rogue drivers could be handled more efficiently, but those responsible for weak oversight could expect penalties as well.
The new regulations will take a number of measures that currently apply to UK banks. This makes it possible to recover previously awarded bonuses and prohibit future compensation if serious deficiencies are identified among board members.
Larger companies will also be required to pay more attention to reporting potential threats – including climate risks – that their operations may face. In addition, better motivation should also be provided in decisions regarding dividend or bonus payment.
The Guardian added: “The British government wants these measures to affect a larger group of companies than was the case until now.” “However, measures will be taken to break the dominance of the lead auditors – Deloitte, EY, KPMG and PwC.”
They will be penalized more easily if it can be demonstrated that they have not made sufficient efforts in their supervisory function to protect companies from bankruptcy. The intention is also that they should hand over a portion of their work to peers in the smaller sector. (wdm)