The news that Theresa May has agreed to consider making larger companies putting small business champions on their boards has been welcomed by small business groups. “,
Federation of Small Businesses (FSB) National Chairman Mike Cherry, said, “For the first time, the Prime Minister’s emerging Corporate Governance agenda reflects what small businesses have been asking for. Within today’s Green Paper is a proposal for large companies to appoint a dedicated Non-Executive Director to their Board to give small suppliers a voice, improve prompt payment and tackle supply chain bullying.
“FSB has been pushing hard for this reform, and we will now work to flesh out how this could work in practice. The UK small business community will want to see this proposal adopted, so that whole Boards own a company’s payment practice and are held accountable for it. In our view, this issue lies at the very core of good corporate governance, and is required alongside reforms to transparency and the proposed Small Business Commissioner.
“Tackling late payment is crucial to the future success of the UK economy. New FSB research reveals a late payments crisis, costing the economy £2.5bn each year due to 50,000 small business deaths. Today’s reform is an important step forward, and we are pleased that the Government has listened and is proposing actions put forward by the UK’s small business community.”