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Eliminate new rules to prevent scandals such as BHS, Carillion, Patisserie Valerie

T

he government Today, it was expected to propose a tough new curb to prevent corporate scandals. Enterprise Clawback Bonus The decision is terribly wrong and will be paid to the director who forbids the payment of affordable dividends.

To the extent of drastic measures, the white paper was ordered after the collapse Carillion, With Patisserie Valerie BHS, The government is making a new proposal Regulator Supervise work Increase the number of auditors and reduce control of the Big Four accounting firms. KPMG, Deloitte, PwC and EY.

The White Paper proposes a scheme that requires all listed companies to regain bonuses and share awards from executive directors if they fail to protect the interests of their customers and employers, the Times reported.

It applies for at least two years after the reward is given.

on dividendCompanies need to issue a formal statement about the legality and affordability of payments, with a move clearly inspired by Carillion’s dividend payments, months before reporting anomalous losses.

The new accounting regulator will replace the Financial Reporting Council, which is funded by taxing companies, and the new definition of “public interest entity” will be extended to include large companies that are not on the stock market. This would have captured a privately owned BHS.

Companies need to hire a small audit firm to look up parts of their accounting with the Big Four accounting firms.

The said that in overhaul, directors must take far more responsibility for the accuracy of corporate accounting, similar to the US Services Oxley Act passed after the Enron scandal.

The white paper will be negotiated until July and will also include new requirements for businesses to detect and prevent fraud.

This paper is an effective implementation of three audit professional reports from Sir John Kingman, Sir Donald Brydon, and the UK competition regulators.

Eliminate new rules to prevent scandals such as BHS, Carillion, Patisserie Valerie

Source link Eliminate new rules to prevent scandals such as BHS, Carillion, Patisserie Valerie

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