A report published today urged the British government to ensure at least half a company's directors be independent of its executives.
The report, written by former investment banker Mr Derek Higgs and commissioned by the British government, proposed a new test to gauge the true independence of directors and also repeated calls for the roles of chairman and chief executive to be separated.
Governments around the world are reviewing rules governing the boardroom after a wave of international scandals threw the spotlight on the role of independent directors, who are meant to keep a check on a company's executive team.
The British report's main findings, released in a brief statement by the ministry for trade and industry, are due to be discussed at a news briefing later in the day.
The recommendation for at least half of all directors to be independent was widely expected but some investors, speaking on condition of anonymity, said they were concerned the 50 per cent rule on independent directors could create conflict.
Experts said the new rule, if adopted, could lead to executives being bumped out of the boardroom, or to companies drafting in lower-quality independent directors.