THE INSTITUTE of Directors (IoD) yesterday criticised proposals to tighten listing rules for companies with controlling shareholders.
The influential group said the idea put forward by the Association of British Insurers for more stringent rules on majority shareholders in London-listed companies would fail to boost governance standards.
It follows criticism of London’s listing rules after controversies at FTSE listed miners Bumi and ENRC.
IoD director of corporate governance Dr Roger Barker said: “It would be a mistake to believe that good governance can be ‘guaranteed’ by more stringent listing rules. Such an approach panders to the laziness of those investors that wish to pass responsibility for investment risk to regulators.”
Regulators are currently mulling over the proposals.