10 April 2017 by Henry Ker
The latest governance stories in the news
Rolls-Royce is holding its first annual general meeting open to workers in May at Derby, where the engine maker employs 14,000 people. Questions seem likely to focus on the firm’s £671 million settlement on bribery and corruption charges in January and its £4.6 billion full-year loss announced the following month.
Rolls-Royce CEO Warren East supports workers representation. In Germany, where the company has 20% of its workforce, workers on boards are commonplace.
The House of Lords Select Committee on Charities has called for changes to commissioning practices, improvements to charity governance and better partnership between charities and other sectors. It also warned of ‘grave concerns’ about the Charity Commission’s proposal to charge charities.
In its ‘Stronger charities for a stronger society’ report, the committee highlights how significant changes have affected the charity sector in recent years and says: ‘Charities face greater operational and environmental pressures than ever before, but their principle is enduring and charities have always helped society through periods of upheaval.’ It also suggests reforming the funding environment to make it easier, and improving the relationship between charities, government and the regulator.
Worries about loopholes in the oversight of dirty money has prompted the Government to set up the Office for Professional Body Anti-Money Laundering Supervision (or OPBAS) to sit within the Financial Conduct Authority. The new body is scheduled to become active at the start of 2018 and will supply AML guidance currently delivered by 25 different organisations, often contradicting one another.
The Football Association council has responded to Government pressure by unanimously approving reform of its governance structure. The intended reforms will reduce the size of the board from 12 to 10, with three of the board members to be women from next year.
In addition, board members will be limited to a maximum of three, three-year terms. The changes still have to be put forward at the organisation’s AGM on May 18, where they will need a 75% majority.