By Kenneth McKenzie and Richard Highley
In the latest of a long line of authoritative reports on reform of the mechanism of corporate provenance, Sir Derek Higgs proposes a two tier board structure mirroring the Continental model and codification of Directors' duties. His report has arrived on the heels of the recent corporate and financial revelations in the US, when the UK Government is under pressure again to act. In the US, statutory reform has been introduced which threatens Directors with jail if they produce inaccurate accounts. The British Government is considering introducing similar legislation here. But to have a thriving economy and a regulatory environment, which encourages Directors to make profit for their companies and shareholders, do they not need the freedom to pursue their corporate vision with no more constraint than is consistent with prudent governance? If we have a structure that is too encumbered by regulation, how can they make decisions freely? A
