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Banks: Directors

Volume 496: debated on Wednesday 9 September 2009

To ask the Chancellor of the Exchequer with reference to Sir David Walker's report on bank corporate governance, what his policy is on the appointment of a proportion of non-executive directors of financial institutions by organisations other than those on whose board they serve. (290838)

Appointments to boards of companies are a matter for the companies and their shareholders in line with the statutory framework. The Combined Code on Corporate Governance sets out information on the role of the board and directors and stipulates that board appointments should be made on merit and against objective criteria.

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 corporate governance. Sir David published his consultation paper on 16 July and is inviting comments by 1 October with a view to reporting to the Government in November. The Government welcomed Sir David's consultation paper and looks forward to receiving his final conclusions.