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Financial Services: Regulation

Volume 496: debated on Thursday 16 July 2009

To ask the Chancellor of the Exchequer if he will bring forward proposals to ensure that non-executive directors of banks and other financial institutions are not appointed by those bodies. (286629)

Company directors are accountable to shareholders for the execution of their duties under the Companies Act 2006. Shareholders are responsible for holding directors accountable for their performance and stewardship and decide whether to appoint or reappoint directors. The function of non-executive directors in banks and other financial institutions is being considered by Sir David Walker as part of his review of bank corporate governance. Sir David's consultation paper was published on 16 July 2009 and the Government will consider its recommendations carefully.