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Directors of listed dealer groups could face annual re-election

Chairmen or even all directors of UK listed companies would be re-elected annually under proposals revealed today by the Financial Reporting Council (FRC).

The corporate governance body wants to make corporate leaders more accountable and learn from the credit crunch.

It proposes to extend to all listed companies - which in the motor retail sector include Pendragon, Inchcape, Vertu, Caffyns and HR Owen - new best practice rules that are being put in place for banks.

The FRC is amending its code following the Walker Review, with emphasis on ensuring that board directors understand their company's activities and risks so they can challenge chief executives.

The changes to the FRC's code take effect from end of June 2010 after public consultation.

The FRC found no evidence of "serious failings" of corporate governance outside banks.

 

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