Companies Act 2006

(asked on 11th October 2021) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what assessment they have made of the relevance of section 172 of the Companies Act 2006 due to changes in business practice since that date.


Answered by
Lord Callanan Portrait
Lord Callanan
Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
This question was answered on 25th October 2021

Section 172 of the Companies Act 2006 requires directors, in promoting the success of their company in the interests of its members, to have regard to a number of matters, including the interests of employees and the impact of the company’s operations on the community and the environment. The legislation is flexible and permissive, allowing companies to identify a purpose for the company other than to benefit its members. Many companies have made successful use of this flexibility.

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