Written question asked by Austin Mitchell (Labour) on Tuesday, 20 June 2000, in the House of Commons. It was due for an answer on Tuesday, 27 June 2000. It was answered by Kim Howells (Labour) on Tuesday, 27 June 2000 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: To ask the Secretary of State for Trade and Industry, if he will introduce legislation to impose a duty of care on auditors towards shareholders of audited companies. - Inc ref to consultation document 'Modern Company Law - Developing the Framework'.

Answer: Mr. Mitchell: To ask the Secretary of State for Trade and Industry if he will introduce legislation to impose a duty of care on auditors towards shareholders of audited companies. [127486] Dr. Howells: The extent to which auditors owe a duty of care to the shareholders of an audited company is as laid down by the courts. We will consider the need to change the position in the light of the final report from the Steering Group of the independent Company Law Review, expected next year. The consultation document issued by the Review in March 2000--`Modern Company Law--Developing the Framework'--addresses the issues surrounding the scope of the duty of care (paragraphs 5.146 to 5.155).

Secondary information