The Trade Union Congress has welcomed the Department of Trade and Industry (DTI) proposals to make company directors' duties more transparent.
Under proposals in the white paper on Company Law Reform, directors could face up to two years in jail or tough fines if they fail to volunteer information to auditors. A
But auditors will be given a new legal right to seek information.
TUC Deputy General Secretary, Brendan Barber, said:
"The TUC welcomes the proposals for more inclusive directors' duties. It is essential that the Operating and Financial Review delivers comprehensive and transparent reporting on all issues relevant foran assessment of a company's performance - especially in the vital area of employment relationships.
"The TUC will campaign to ensure that these objectives are met in the new Companies Act."
