You are using an older browser version. Please use a supported version for the best MSN experience.

Two thirds of company bosses back plan to avert Carillion repeat

Daily Mail logo Daily Mail 12/01/2019 Neil Craven for The Mail on Sunday
© Getty

Two thirds of company directors have backed a plan to put Government contractors under closer scrutiny and avoid more Carillion-style collapses.

A new type of company, called a Public Service Corporation, would be set up for those with public sector contracts to require directors by law to extend their focus beyond shareholders to ‘demonstrate higher levels of accountability to staff and suppliers’.

Download the Microsoft News app for your Android or iPhone device and get news & live updates on the go.

Public sector contractors have been accused of focusing too closely on profits. The failure of Carillion, the anniversary of which is tomorrow, led to calls for tighter controls to prevent further chaos.

a close up of a sign: One year on: The failure of Carillion led to calls for tighter controls to prevent further chaos © Provided by Associated Newspapers Limited One year on: The failure of Carillion led to calls for tighter controls to prevent further chaos

But in recent weeks contractor Interserve has been forced into talks with lenders to cut debt, while builder Kier had to raise £264million from shareholders before Christmas for the same reason.

Under plans approved by 65 per cent of the 750 directors polled by the Institute of Directors, firms would have to recognise that ‘decisions favouring shareholders or senior executives should be balanced against obligations to other stakeholders, including staff, creditors, pensioners and local communities.’

AdChoices
AdChoices

More From Daily Mail

image beaconimage beaconimage beacon