Alan Bates and Others v Post Office Limited

Lord McNicol of West Kilbride Excerpts

Wednesday 24th January 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

I thank the noble Lord for that question. The Financial Reporting Council is the UK body that deals with accounting failures. It had a considerable review following the failure of Carillion and British Home Stores—the Sir John Kingman review in 2018. A number of Carillion’s previous directors have been disqualified and other cases are still under way. The FRC is now much more effective as an audit regulator—it has had a change of personnel, and the relationship between the FRC and the audit companies has been removed at further arm’s length. There is still a long way to go, but the FRC is now in a position to take more stringent action.

[Lord McNicol of West Kilbride (Lab)]

My Lords, this is not a new question. Noble Lords from across your Lordships’ House have been asking it, and I first raised it in 2019 after the court case. As a sole shareholder, His Majesty’s Government have both a right and a responsibility, so I take the Minister back to those original questions. What are we going to do to hold to account the board members who failed in their Companies House and directors’ duties when the Williams report comes?

[Lord Offord of Garvel (Con)]

The noble Lord is right to say that it is for the members of a company to take action against directors who have breached their statutory duties. In this case, the sole shareholder is the Government. Therefore, once the inquiry has finished, the Government will be in a position to take action specifically against any directors who have failed in their duties.