Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to page 4 of the Government's paper Corporate Governance Reform published on 29 August 2017, whether he has assessed the potential effect of a designated non-executive director on strengthening the voice of employee influence.

The Government’s green paper on corporate governance reform sought views on the option of designating a non-executive director to ensure that voices of employees and other interested groups are heard at board level. Responses to the consultation suggested that this could be an effective option if appropriately resourced and supported, and care taken to ensure that the responsibilities associated with the role are clearly identified.

It will be for individual boardrooms to determine how they can engage most effectively with employees and meet their duty to have regard to employee interests.

The Government intends to introduce secondary legislation to require all companies of significant size (private as well as public) to explain how their directors comply with the requirements of section 172 to have regard to employee and other interests.