(Bloomberg) -- The Confederation of British Industry is proposing sweeping changes, including the early departure of its president, as it battles to survive as a slimmed down organization.
Britain’s most prominent business lobby group is also seeking guidance on possible insolvency, after a slew of companies including John Lewis Partnership Plc and Natwest Group Plc ditched their memberships in the wake of a sexual assault scandal among the CBI’s workforce.
In a prospectus sent to members Wednesday, the CBI set out turnaround plans ahead of a vote on its future to be announced at a meeting on June 6. The vote will determine whether the CBI and its new director general, Rain Newton-Smith, have the backing of members to continue.
The CBI, which claims to represent 190,000 businesses, has unraveled after a series of allegations including that a staff member was raped by a colleague at a boat party on the river Thames in 2019. The UK government has suspended engagement with the organization, leading to fears over its financial future — the majority of its £25 million ($31 million) annual income comes from membership fees.
Ahead of the crunch meeting, the CBI announced Wednesday a refresh of its board, including an accelerated search for a successor to its president, Brian McBride, with the handover beginning no earlier than January next year. McBride started the role, which normally lasts for two years, in June 2022.
Four non-executive directors will also leave the board by the end of September. “The need to bolster the CBI’s governance structures is something that has come through loud and clear during this period,” said McBride, in an emailed statement.
The CBI has also hired consultancy firm Principia to lead a culture review. “Principia’s expert findings show that while our purpose and hard work to influence and inform on behalf of our members gives us a strong identity and motivates our staff, that focus has come at a cost,” said Newton-Smith, in an emailed statement. “Blanket accusations of the CBI’s culture being toxic are not correct, but we have work to do to embed a consistent set of values for all of our staff.”
If supported by its members, the CBI will likely be smaller and will focus on fewer policy areas, such as skills, the competitiveness of the UK internationally and climate and green energy.
Read More: Rape Claims Shake UK Political Titan in Warning to All Business
The CBI did not say which law firm it has hired to advise on a potential insolvency. It if fails to win enough support from members, it will be left with few options for survival. “Following a series of member resignations, we know that the CBI will need to be smaller and refocused in the future,” a CBI spokesperson said. “The board has sought advice on matters of restructuring as may be appropriate, as any responsible board would.”
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