§ Mr. LazarowiczTo ask the Secretary of State for Trade and Industry what steps she is taking to encourage companies to appoint independent non-executive directors. [35187]
§ Ms HewittThe Government's approach to this issue was set out in the pre-Budget report, which stated
The Myners review highlighted the importance of non-executive directors in UK corporate governance. The Company Law Review drew attention to a growing body of evidence from the US suggesting that companies with a strong contingent of non-executives produce superior performance. The Government recognises the importance of continued progress in this area, and of developing further the role of strong, independent non-executive directors within the present best practice framework of corporate governance for quoted companies.We consider that effective non-executive directors have a key role to play in contributing to the success of their companies. This is an area where the Government believe that there is room for improvement. We regularly discuss this issue with institutional investors and other leading business organisations, and recognise and appreciate the work they do in raising the effectiveness of non-executive directors.