Charles Tilley, chief executive, CIMA, commented: "The silver lining in the decision to abolish the statutory Operating and Financial Review was that it provided the opportunity to revisit the issue of director's liability for forward-looking statements.
Individually, and collectively with other concerned bodies, CIMA has made its concerns known to the Department for Trade and Industry (DTI), asking that UK company law be amended so that directors should not be penalised for statements made in good faith which are not reckless. Such protection, often referred to as a 'safe harbour' is vital to ensure that directors can confidently make forward-looking disclosures."
The new clause states that a director will only be liable for misleading or dishonest statements, but includes the fact that a director has the responsibility to consider whether information is misleading or dishonest.
