Responsibilities According to Mr Sparrow

Article excerpt

A major reduction in the red tape that company directors have to wade through is on the cards in the next few years, according to a new book.

But at the same time, new laws will be brought in to control directors who fall into the "fat cat" category, predicted author Mr Andrew Sparrow, a corporate law specialist at Birmingham-based Cartwright & Lewis.

Mr Sparrow's book, The Responsibilities of Company Directors, includes details of the legislation likely to emerge in both these areas in the wake of the Government's intended overhaul of the Companies Act.

This review is likely to tackle the over-regulation and excessive detail company law has become bogged down in.

At the same time, the Government is likely to introduce legislation designed to regulate the activities of directors to prevent them abusing their positions in terms of the way they reward themselves.

Mr Sparrow said: "There has not been a major review of company legislation for 40 years and this Government has signalled its intention to modernise the law in this area within the next few years. …