Late last year, GC100 – the voice of general counsel and company secretaries working in FTSE 100 companies – published guidance for directors in relation to section 172, including stakeholder considerations.
The practical steps outlined are sure to be of interest to many users of business support services like those provided by ourselves here at London Registrars.
How can you discharge your duties as a director?
The GC100 guidance proposes various actions that directors can take to fulfil the section 172 duty.
The group urges directors to reflect on section 172 duty when setting and updating their company’s strategy, for example, establishing and attending training courses on induction to the board. It highlighted the importance of ongoing updates being provided on section 172 duties in the context of the director’s wider duties and responsibilities.
GC100 has also called on directors to consider and arrange to receive the necessary information on appointment, and subsequently to undertake the role and satisfy the duty. Another suggestion is that directors implement policies and processes to help their firm’s operating strategy and support its goals in light of the section 172 duties.
Directors have also been asked to think about their company’s approach to engagement with employees and other stakeholders.
Similarly, directors should consider the stakeholders experience with their firm, its board and management, through both specific channels and day-to-day interactions. The extent to which engagement feedback is communicated back to the company should also be assessed, as well as whether the firm does what it claims to do for stakeholders.
Finally, the group also encouraged directors to think about how they can embed a culture that is consistent with the goals of the company in relation to stakeholders – whether or not the latter are the firm’s staff, customers, suppliers, local communities, the environment or others engaged with or impacted by the activities of the business.
The complete tailored business support services
Is your organisation on the lookout for the complete suite of specialised business support services in London, ranging from bookkeeping and accountancy to legalisation and compliance support?
If so, don’t hesitate to enquire to the London Registrars team for the most relevant and up-to-date advice, guidance and services from our capable and experienced professionals – and which, crucially, will free up your directors and managers to focus on the company’s core business.