The Business Review: An analysis of section 417 of the Companies Act 2006

• Published in: The Enlightened Shareholder Value Principle and Corporate Governance pp. 145 - 184
• Main Author: Keay, Andrew
• Format: Book Chapter
• Language: English
• Published: United Kingdom Routledge 2013; Taylor & Francis Group
• Edition: 1
• Subjects: Company law; UK List Company; UK Corporate Governance Code; Company's Business; UK Company Law; Enlightened Shareholder; Case Western Reserve Law Review; Financial Key Performance Indicators; Stewardship Code; Relevant EU Directive; Unpublished LLM Thesis; Key Performance Indicators; Financial Reporting Review Panel; Company Law Reform Bill; Law Journal; ASIC; Law Review; Company's Annual Accounts; Company Law Review Steering Group; UK Corporate; Chief Executive Offi Cer; UK Corporate Governance; Principal Risks; Fair Review; Listed Companies
• ISBN: 9781138025226; 1138025224; 9780415684347; 041568434X
• DOI: 10.4324/9780203104927-5

I indicated in the last chapter that there are two legislative limbs (or pillars) to enlightened shareholder value (ESV). The first, contained in s.172 of the Companies Act 2006 ('the Act') was the subject of Chapter 4. As we saw in the last chapter, s.172 lays down the duty of the directors. This chapter now examines the second limb, found in s.417 of the Act. This provision is complementary to s.172 and addresses the need for companies to report on, inter alia, how the directors have addressed their duty under s.172. It is, therefore, an accountability mechanism as far as the actions of the directors are concerned.