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Company Law Reform Bill [Lords]

I understand the hon. Gentleman’s concern, but I do not agree with it, because such an obligation is not unending. There are companies in this country—I worked for one of them—that, although they did not necessarily find such an arrangement easy at first, have found it achievable, a good thing and of benefit to them in the long run. My argument is that that obligation will be of benefit to British business. It will ensure that we are competitive and moving ahead of many other countries. Under the terms of the Bill, shareholders can take action against directors only if they have cost the company financially, which is almost like the company suing itself. There is unlikely to be much litigation in those circumstances. Finally, I want the Minister to confirm that the intention is that the Bill will ensure that UK companies are more accountable for their impact on workers, communities and the environment, both in the UK and overseas. Will the directors’ duties and the duty to report on corporate social responsibility be strengthened and given teeth? I, too, believe that it is a great shame that the operating and financial review has been abolished, because it would have provided a good framework and greater transparency for shareholders and stakeholders. The proposed business review is much weaker. There is no requirement for information on social issues, and less stringent audit requirements. The OFR was not just a good thing in theory; in my experience, corporate social responsibility and the implications of the OFR are a good thing in practice not only for the good health and wealth of UK companies, and for their employees, local communities, the environment and stakeholders, but also for those living in developing countries.