Wider Representation on Company Boards and Directors’ Duties

The Prime Minister has announced that she wants to see worker and consumer representatives on company boards. If they are appointed consideration needs to be given to how they would be required to act. This article focuses on duties under s 172(1) and s 172(3), Companies Act 2006 and considers how worker and consumer directors should fulfil these duties. It explains that while these directors will be able to consider factors that concern them (to the extent that they are listed in s 172(1)) they will still have to be concerned that what they do will promote the success of the company for the benefit of the shareholders or creditors.