CBI considers insolvency in wake of sexual harassment claims
CBI considers insolvency in wake of devastating sexual harassment claims that saw huge firms quit the group
- CBI has sought legal advice on insolvency in wake of sexual harassment claims
- The allegations saw a mass exodus of major firms like Aviva, John Lewis and BT
The ‘scandal’ hit Confederation of British Industry (CBI) lobby group has sought legal advice on possible insolvency as it faces an existential crisis after sexual harassment claims.
Lawyers from an unnamed City firm were hired to offer advice to the group, ahead of a make or break vote on its future this month.
The group, which has previously claimed to represent 190,000 businesses, has been engulfed in a scandal after allegations of rape and inappropriate touching.
Bosses are expected to publish a prospectus ahead of a company meeting on June 6, which will lay out proposed governance changes.
New director general Rain Newton-Smith has pledged to turn around the group so it can continue to be a voice for businesses.
The group, which has previously claimed to represent 190,000 businesses, has been engulfed in a scandal after allegations of rape and inappropriate touching
READ MORE: CBI is rocked by new claims of sexual misconduct: Woman who says she was raped at staff boat party on Thames is among more than a dozen ‘victims’ to come forward
Former top staff at the company faced allegations of sexual misconduct and inappropriate behaviour to staff, after reports in The Guardian newspaper.
Ex-director-general Tony Danker was sacked last month for allegedly making unwanted contact with a female employee. He claimed he has been made a ‘fall guy’ for the wider crisis.
A CBI spokesperson said last night: ‘Following a series of member resignations, we know that the CBI will need to be smaller and refocused in the future.
‘The board has sought advice on matters of restructuring as may be appropriate, as any responsible board would.’
If members vote against the proposals, the group may have to begin a winding up process.
The CBI, which was founded in 1965, has faced a battle to retain members after dozens of major firms including Aviva, John Lewis and BT left or suspended their membership following a second rape allegation from a female employee last month.
The Labour Party also confirmed it has severed links.
Former member Andy Wood, head of Suffolk-based brewer Adnams, has previously told the BBC’s Today programme: ‘I think probably the CBI brand is now beyond repair. It will have to reinvent itself root and branch.’
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