The key areas suggested where BIS believes corporate directors may continue to be allowed are:

• UK companies with shares admitted to trading on regulated markets (e.g the main market of the London Stock Exchange) or prescribed markets (like AIM), on the grounds they are already subject to significant transparency requirements.
• Large public (PLC) and private (limited) companies in group structures, where BIS believe the case is more finely balanced. A supplementary question asks if the exemption should only be available if all of the directors of any corporate director are themselves natural persons.
• Companies subject to sectoral regulation including charitable companies, trustee companies of pension funds and open ended investment companies.
• Societas Europaea and Limited Liability Partnerships.

BIS is of the view that a corporation sole should continue to be able to act as a director. An example of a corporation sole would be “The Secretary of State for Business, Innovation and Skills” rather than the named holder of that office at any particular time.

The ban on corporate directors is contained in the Small Business, Employment and Enterprise Bill which is currently before Parliament. The Bill provides that the Secretary of State may make regulations exempting certain companies from the ban.

The deadline for comments is 8 January 2015.

Click for:

• The full consultation (link to the BIS website).
• Our previous UK Accounting Plus news item on the Small Business, Employment and Enterprise Bill.