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03 February 2020
On 4 November 2019, in the looming shadow of the collapse of Thomas Cook Group plc ("Thomas Cook"), the Business, Energy and Industrial Strategy ("BEIS") Committee published a letter of recommendations to the Secretary of State for the Department of BEIS, Andrea Leadsom.
The letter follows BEIS' inquiry into the collapse of Thomas Cook and the factors that led to the global travel group's downfall and covers a range of recommendations relating to corporate governance, audit reform and executive pay and bonuses, including the following:
Many of the recommendations re-emphasise points of concern previously raised by BEIS. The recommendations indicate what next steps the Government may take to help prevent a monumental collapse, such as Thomas Cook, from happening again and considerations companies should have when reflecting on the way in which businesses are run. In any event, the letter from BEIS is a clear statement and push to encourage the Government to take urgent steps "in order to mitigate against the worst impact of corporate failures on employees, consumers, suppliers and taxpayers".
If these recommendations are actioned, we can expect to see further changes to corporate governance and increased reporting requirements as well as a new regulatory body replacing the FRC to police these obligations.
For further information on this topic please contact Emily Downie or Hannah Crosland at Squire Patton Boggs by telephone (+44 161 830 5000) or email (email@example.com or firstname.lastname@example.org). The Squire Patton Boggs website can be accessed at www.squirepattonboggs.com.
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