Source · Select Committees · Business and Trade Committee
Recommendation 1
1
Paragraph: 28
The corporate structure and governance of GFG Alliance companies resulted in no formal oversight or...
Conclusion
The corporate structure and governance of GFG Alliance companies resulted in no formal oversight or accountability of the decisions taken by Sanjeev Gupta. Mr Gupta put members of his staff in an unacceptable position by employing them with job titles associated with traditional executive functions in well run companies, without giving them the required access to information or decision-making powers necessary for them to perform their duties. It is unclear why Mr Gupta opted to structure his companies in this unusual and, given the scale of his operations, unacceptable way.
Paragraph Reference:
28
Government Response
Accepted
HM Government
Accepted
3. Complex corporate structures exist for a variety of reasons, and the government does not wish to restrict the ability of businesses to structure themselves appropriately. However, the government agrees that those structures should not be a legal barrier to proper scrutiny of companies such as the GFG Alliance.