IT directors vulnerable to shareholder revolts, report warns

IT directors could be ousted by shareholders unless they adhere to the Turnbull Report. The warning comes from consultancy NCC Services.

The Turnbull Report sets out codes of practice covering general business issues that should be applied to protect a company, and are now a pre-requisite for all UK listed companies. The recommendations increasingly cover IT, which with the advent of virus problems, continuity issues, email liability and the data protection act, have become central to risk management.

"The threat of shareholder action brought on by the Turnbull Report is unlikely to be welcomed by most directors. But it's long overdue and any director not aware and acting on these issues isn't doing their job properly," said Paul Vlissidis, Head of Risk Services at NCC Services.

Dr Daniel Summerfield, research and development executive at the Institute of Director's (IoD) professional development department, said: "We support the Turnbull Report. Most directors will be able to cover its guidelines as part of their normal business protection practices."

The Turnbull Report was developed by a London Stock Exchange committee headed by entertainments conglomerate Rank Group's finance director, Nigel Turbull and Roger Davis, head of professional affairs at PricewaterhouseCoopers.