Stick to rules to stop another BHS collapse, say MPs
MPs are urging sweeping reforms to prevent another disaster like BHS with 11,000 job losses and a £571million pension blackhole.
They want private and publiclylisted firms to face the same level of scrutiny.
They believe large private companies should stick to rules from independent regulator the Financial Reporting Council about board leadership and, for public firms, on pay and shareholders.
The work and pensions committee MPs also think directors at private businesses should be accountable to pensioners through their scheme’s trustees.
Committee chairman Frank Field said BHS’s collapse last April was triggered by “gross failures of corporate governance” and j ust being accountable shareholders was not enough.
He asked: “Would the story have played out the same way if its directors had to be open about the financial decisions they were making for its future?
“The finances and leadership of a company with so many people depending on it should be open to scrutiny.” The recommendations to came as correspondence between the committee and Arcadia Group’s Sir Philip Green, who sold BHS to a serial bankrupt in 2015 for £1, was released.
According to MPs, Arcadia’s pension deficit is up to more than £200 million, from £190million in August 2015. It rebuffed Mr Field’s requests for up- to- date details about the pension fund.
BLASTED: Philip Green