Derek Higgs, author of the government-sponsored review into the role of non-executive directors, yesterday admitted the report's recommendations were too tough.
Higgs admitted that the draft code had "too much of a feel of regulation" and needs redrafting. He said: "The suggested code was done quickly. It came over as a bit hard-edged. That allowed people to stir it all up."
Higgs' review called for the appointment of a senior non-executive director to company boards and said non-executives should meet without the chairman or executives being present.
The review attracted intense criticism in the weeks that followed its publication. Brokers warned the cost of insuring directors could rise by 50% if Higgs' report was implemented.
The Higgs report concluded that companies should be able to indemnify directors against proceedings.
But Biba chief executive Mike Williams said several months ago: "If the government, however indirectly, insists that directors be covered against all claims, insurers will say: OK, but that has to be reflected in the pricing."
Higgs defended the thrust of his report, saying it was designed to improve the performance of non-executive directors and their companies.
