Tilley applauds provision of "safe harbour" for directors.

Position:FIRST IN ... - Charles Tilley - Brief article

CIMA's chief executive, Charles Tilley, has welcomed the government's decision to limit directors' liabilities relating to forward-looking statements made in the new-style business review. Following an extended consultation period, the Department of Trade and Industry announced last month that it intended to include a "safe harbour" clause for directors in the forthcoming company law reform bill.

The institute has been vocal in asserting that directors may feel reluctant to make predictions of future performance in annual reports if they are liable to legal action for erroneous forecasts. The new...

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