Oral Answers to Questions

Debate between Norman Lamb and Alun Michael

Thursday 15th March 2012 Commons Chamber

[Norman Lamb]

I thank my hon. Friend. I am proud of the fact that the Government are investing £1.34 billion in ensuring that we retain the post office network, in marked contrast to the Labour party, which spent public money on closing down great chunks of the network. There is a lot of work to be done, and we particularly need to ensure that the post office becomes the front office of both local and national Government services. Post Office Ltd has already had significant success in that regard.

[Alun Michael (Cardiff South and Penarth) (Lab/Co-op)]

16. What steps he is taking to promote observance of section 172 of the Companies Act 2006.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Norman Lamb)]

Directors’ duties were codified in the Companies Act 2006, providing legal clarity for directors and raising awareness of their duty to have regard to long-term factors in promoting the success of the company. A variety of guidance is available to directors to help them observe their legal duties.

[Alun Michael]

I thank the Minister for that reply. He spells out the need for directors to make judgments that look after the long-term interests of the company in accordance with section 172. Will he take this opportunity to confirm that specific regulatory requirements, which are very often referred to as tick-box requirements, in no way trump, or have to be regarded as superior to, the responsibility of directors to make the sort of judgments referred to section 172, to which he referred in his reply?

[Norman Lamb]

I can confirm that the duty in section 172 is absolutely clear. The evidence of surveys shows that the duty is well understood, and it is important that directors abide by it.