For
immediate release: Friday 20th September 2002
IMA CALLS ON HIGGS
REVIEW TO BRING GREATER CLARITY TO ROLE OF NON EXECUTIVE
DIRECTORS
In its submission today to the Derek
Higgs’ review of the role and effectiveness of
non-executive directors, the IMA argues that:
-
Problems
of corporate governance do arise within companies from
time to time which call into question the role played by
non-executive directors.
They are not problems with the broad framework of
corporate governance rules provided by the Companies and
the Combined Code, but rather with the way
responsibilities under it are discharged.
-
There
should be better definition of the roles and
responsibilities of non-executives, and of what
constitutes independence.
-
Non-executives
should receive fair but not excessive remuneration,
based on an appropriate consultancy rate and an agreed
projected time commitment
-
The
practice of designating a “senior non-executive
director”, who could be available to act as an
informal conduit for shareholders, should be taken up
more generally. But
giving one director a specific responsibility to
represent the interests of shareholders does not commend
itself.
Richard Saunders, Chief Executive of
IMA, said:
“The Higgs Review is an
important initiative.
Independent non-executive directors play an
essential role in the governance of companies to which
institutional shareholders attach real significance.
While the existing framework does not need
fundamental reform, it can be made to work better.
We hope our suggestions will commend themselves to
the Review.”
-
ends -
Attachment
- Higgs Review
For further information please
contact:
Richard
Saunders, Chief Executive, IMA, 020 7831 0898
Helen
Stephenson, Communications Officer, IMA, 020 7831 0898
Notes
to Editors:
IMA is the trade body for the UK asset
management and unit trust / OEIC industries. IMA members
manage assets of over £2 trillion (£2,000 billion),
including 99% of the investment funds industry.
The summary of IMA’s submission is
attached. The
full version is available on the IMA web site.
65
Kingsway London WC2B 6TD
Tel:
+44 (0) 20 7831 0898 Fax:+44 (0) 20 7831 9975
www.investmentuk.org
Investment
Management Association is a company limited by guarantee
registered in England and Wales Registered number 4343737.
Registered office as above.
|
