On 1 August, the UK National Association of Pension Funds (NAPF) publicly backed the "considered and measured" approach of the company law steering group in its 5th consultation document: Modern Company Law For a Competitive Economy: Developing the Framework - as the appropriate way forward for company law reform.
In its formal response to the governance issues raised by the steering group, the Association firmly reiterated its belief that the primary focus of UK company law reform should be to protect shareholder interests, increase shareholder value and thus support enterprise. It would be misguided, the NAPF argued, to include the interests of groups other than shareholders in company law.
The steering group's view of the "inclusive" approach to directors' duties, however, provides a workable framework which will require company directors to "have regard" to other relationships on which a company depends for success in both the long and short term. The NAPF concurs with the steering group's view that this wider public accountability can be achieved through improved company reporting.