Following the ban on corporate directors as laid out in the Small Business, Enterprise and Employment Bill (as discussed in the July 2014 edition of this publication), BIS sought views in a consultation paper on 27 November 2014 on how far the exceptions should extend.
In this paper, BIS recognises:
- The benefits of allowing corporate directors to be appointed by companies admitted to trading on a regulated market;
- That there may be benefits to allowing companies admitted to prescribed markets to make corporate director appointments, and requests feedback on the possibility and scope of this exception;
- For public companies that do not fall into the two points above, the paper requests views on whether there should be any exceptions, and suggests that any exception be linked to company size; and
- The risks of impeding future investments by extending the changes to LLPs – current rules applying to LLPs will remain the same, however the situation will remain under review.
The consultation closed on 8 January 2015, and is available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/378197/bis-14-1017-scope-of-exceptions-to-prohibitionof-corporate-directors.pdf.
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