Why directors need PROs more than ever

19 October 2007

Since the beginning of this month protecting a company’s good reputation is no longer just a commercial imperative for PROs but a legal requirement for the directors that they advise.

The new Companies Act legally obliges company directors to consider the “desirability of maintaining a reputation for high standards of business conduct” when making corporate decisions. If they don’t consider the reputational impact of their actions, they could be in breach of their duties to the company and potentially sued by shareholders.
In order to reduce that risk, Boards should consider minuting the fact that they have considered reputational issues associated with any major decisions. If they can show that they took advice on such issues from PROs, so much the better.

For more information please contact us
legal@schillings.co.uk
+ 44 (0)20 7034 9000

First published on Gorkanaas part of Schillings' regular contribution to their site.
Gorkana is about creating a media market place for both financial/corporate PR professionals and the media to engage and interact. www.gorkanapr.com