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Originally Posted by RichardCoulter
Generally speaking, the primary goal of private companies is to make as much profit as possible (in fact this is a legal requirement of directors). Even things like improving customer service are done with this in mind.
Add the relaxation of the regulations into the mix to aid private companies and this is the result.
If the BBC were to be scrapped or neutered (as some would like) this situation would reflect the whole of the broadcasting landscape.
I do feel for the staff (including office & support staff), though I doubt Roman Kemp will be going hungry if he's one that gets the chop!
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Myth - belief, not law...
https://www.taxresearch.org.uk/Blog/...-to-avoid-tax/
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So what is abundantly clear is that in UK law there is:
a) No duty to maximise profit
b) No duty to minimise tax bills
c) A clear duty to exercise judgement.
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https://www.telegraph.co.uk/finance/...only-duty.html
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First, the law.
The Companies Act 2006 Section 172 requires directors to promote the success of the company, but with regard to six factors:
the likely long-term consequences of a decision;
the interests of employees;
relationships with suppliers and customers;
the firm’s impact on the community and the environment;
its reputation for high standards of business conduct;
and the need to act fairly between shareholders.
The effect is precisely to prevent managements from automatically pleading a duty simply to maximise shareholder value.
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https://www.icsa.org.uk/knowledge/go...purpose-profit
You appear to be misinterpreting Section 172(1) of the Companies Act 2006, which defines a director’s duty
‘"to promote the success of the company for the benefit of its members as a whole’, while having ‘regard to’ various other stakeholder interests. ".
"
Promoting the success of the company" is not the same thing as "
make as much profit as possible" - I would have thought you would have known that, having been the director of a company?
As an (slightly tongue-in-cheek) aside, if, as you say, Directors have a legal requirement to make as much profit as possible, doesn't that mean they should pay themselves less, thus increasing the company profits?
