---

Dept of Trade and Industry

Answer

Mr. Jim Cunningham: To ask the Secretary of State for Trade and Industry what duty of care there is on corporate directors to take account of the consequences to (a) communities, (b) the environment, (c) health and safety of employees and (d) shareholders of decisions they take. [218999] Jacqui Smith: Directors owe fiduciary duties and duties of care and skill to the company. In fulfilling these duties, a director will need, where relevant, to consider the impact of the company's operations on the community and on the environment. Directors can, in certain circumstances, be personally guilty of a health and safety offence (under the Health and Safety at Work etc. Act 1974), The Company Lay Reform Bill, draft clauses of which will be published this session, will include a statutory statement of director's general duties. This will require each director to act in the way that he or she concludes is most likely to achieve the success of the company for the benefit of its members as a whole. The director's duties will be owed to, and enforceable by the company.

Secondary information

Type

Written question

Reference

431 c1304-5W;431 c1298-9W; 218999

Session

2004-05

Subjects

Companies Directors Liability Environment Health and safety Shareholders

Link

View this Written question on www.publications.parliament.uk