Mutual life office directors should be required to follow the same Combined Code of Corporate Governance as listed companies and provide even greater voting rights when seeking to act in the best interests of members, says the latest report from Paul Myners.
Details of the study launched today – entitled Myners review and the governance of life mutuals - was produced in part on the back of the Penrose Report into the Equitable Life affair in February 2004, as that document was highly critical of the management structure and the role of non-executive directors. As a result, Myners has produced a new study for the Treasury which suggests not only should members be given greater information and voting rights on key decisions within mutual life insurance firms – given members are the effective ‘owners’ of the company – but the role of the board ...
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