Sometimes it takes just a spark to light a blaze that gets out of control. In its mishandling of the final stages of the companies bill, the Department of Trade and Industry has set fire to years of work building a consensus with business to agree reforms of corporate law.

At first sight, the new proposal for companies to disclose information about suppliers looks similar to the government plans for statutory operating and financial reviews (OFRs) that were in the bill until the Treasury decided to scrap them. This type of broader business commentary can help to focus attention on strategic questions beyond the next quarterly earnings figures. But the original OFR proposals were firmly underpinned by detailed accounting standards in a way that the current plans are not. This makes them harder for businesses to interpret. The DTI promises guidance: that must emphasise that the information need be given only where it is material and is at directors’ discretion. Even then, there are likely to be high-profile and costly legal challenges as the non-governmental organisations that have pressed for the proposal try out how it is being applied in practice.