Does this really make sense?

Corporate governance overhaul Alan Johnson, trade secretary, was expected to publish a Bill today designed to overhaul corporate governance. Critics have said that the proposals could increase litigation against directors by shareholders - driving up liability insurance rates. Ministers have said that they would cut red tape and save businesses around £250m a year. Under the Bill, companies would no longer have to appoint a company secretary or hold AGMs and auditors' liability, in the case of client negligence, could be limited. The CBI said that the deregulatory aspects of the legislation would benefit SMEs in particular.

Times Online News Article

I agree in reducing red tape for SME's however, if corporation start adopting these rules is this a chance for another Enron?