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BEIS Audit and Governance Reforms deemed Anti-Growth by Company Directors

The Quoted Companies Alliance (QCA) recently issued a survey of companies and investors on the BEIS audit and corporate governance reform consultation. The results show that company directors are worried that the proposals will have an overwhelmingly negative impact by impeding growth, making directorships less attractive, reducing diversity and shifting the focus of boards from business performance to compliance. Overall, it is likely companies will reconsider their listing on the public markets.


Headline results show:

  1. 59% of companies believe the reforms will have a negative impact on their growth, just 2% believe the reforms will have a positive impact.
  2. Nine-tenths of companies (90%) and four-fifths of investors (81%) believe that the proposals have the potential to deter prospective individuals from seeking directorships, or existing directors retaining their directorships.
  3. Nearly 9 in 10 companies (87%) and three quarters of investors (75%) agreed that the current proposals to expand the definition of a PIE would be too onerous and costly.
  4. Nearly two thirds of companies (58%) indicated that they would be likely to re-evaluate the worthwhileness of their listing.

Read the QCA's full response, including commentary from QCA CEO Tim Ward here.



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