"To dilute the primacy of the duty of the BOFI director to shareholders to accommodate a new accountability to other stakeholders would risk changing fundamentally the contractual and legal basis on which the UK market economy operates. It would introduce potentially substantial new uncertainty for shareholders as to the value of their holdings and would be likely to lead to shareholder exodus from the sector and a rise in the cost of capital for BOFIs. Broadening the range of board responsibilities and, to take one suggestion, statutory provision for addition to the board of a representative of a particular stakeholder interest (such as that of employees or of minority shareholders) would distract and dilute the ability of NEDs to concentrate in the boardroom on the most important strategic matters."
Friday, 17 July 2009
No revolution in banks boards...
From Walker, page 31