Question to the Department for Business, Innovation, Science and Trade:

To ask the Secretary of State for Business, Innovation, Science and Trade, what assessment his Department has made of the effectiveness of worker governance models within state-owned enterprises.

UK listed companies are subject to the UK Corporate Governance Code which includes provisions for workforce representation on company boards by having either a worker on the board, a director responsible for engaging with the workforce or a formal workforce advisory panel. While the Department has not commissioned research in this area, the Financial Reporting Council’s annual review of reporting under the Code considers how boards have followed these provisions. The Government expects state-owned enterprises to follow the Code to the extent appropriate, and also expects directors of state-owned enterprises to comply with fiduciary duties followed by directors of private companies under the Companies Act 2006, including the need to have regard to employee and other stakeholder interests, and to the likely consequences of any decision in the long-term.