The bank directors' duties: time for the new enlightenment?

Abstract

In the aftermath of the recent banking crisis, much of the debate on how to secure future financial stability has focused on forms of bespoke banking regulation and corporate governance. This article, however, considers the potential effect on the directors of banks of the newly codified duties under the Companies Act 2006. In particular it studies S.172 – the duty to promote the success of the company – and the impact of 'Enlightened Shareholder Value' (ESV). It questions the enforceability of this new provision and suggests ways it could be reinforced to have a greater influence over the banking industry.