Business lobby group The Confederation of British Industry (CBI) has reportedly appointed lawyers to advise on its future ahead of a key members vote next week.
Following a wave of complaints in recent months and two allegations of rape, which prompted many household name companies to quit the group, an unnamed City law firm will advise on directors’ duties moving forward, Sky News reported.
"It is about making sure the board is complying with its obligations at an uncertain time," a source said, with members due to vote on a new prospectus next Tuesday, 6 June.
According to Sky’s source, a vote against the CBI’s proposals to deliver a new mandate would all but force the group to wind up operations.
CBI suspended its activities in April after a police investigation was launched into the alleged rapes and several harassment complaints.
Former director-general Tony Danker was sacked in March following inquiries into an unrelated incident of improper behaviour.
New director-general Rain Newton-Smith has said that the CBI needed “concrete actions and transparency [..] so that everyone feels empowered to share their stories”.