Amy Harvey was interviewed by Law360 to discuss the implications of the Government’s withdrawal of the draft Companies (Strategic Reporting and Directors’ Report) (Amendment) Regulations 2023 in the wake of the Carillion collapse.
The Q&A focuses on Amy’s answers to the following questions:
- Will the government's withdrawal of draft regulations make a repeat of the Carillion collapse more likely?
- Is there any element you would emphasise in the shelved regulations that is missing in requirements for listed companies?
- Could the draft regulations have helped to stop market abuse and fraud?
- Would the draft regulations have provided a useful safeguard for privately-owned companies?
- The government has said that it remains committed to wider audit and corporate governance reform. How far will this compensate for the withdrawal of the draft regulations?
Key quotes include:
'Carillion is the most obvious example of corporate failure that the draft regulations could address. The government's withdrawal of those regulations makes it more likely this will happen again.'
'Companies must comply with existing rules but can now take a "wait and see" approach to new reporting rules.'
'The reality is that when businesses are under economic pressure like now, it can make accounting fraud more likely, and this makes the need for greater governance ever more pressing.'
The full article can be found here: 5 Questions For Ontier Partner Amy Harvey (please note that a Law360 subscription is required to view the full article)