The Labour Party has criticised the UK government's choice of chair for its coalition group that will be developing corporate governance principles for private companies. James Wates CBE, chairman of Wates, a family-owned construction firm, chaired the first meeting of the group this week.

The Guardian highlighted that the Wates company is a regular donor to the Conservative Party as shown in the Electoral Commission database, which records the donations received by the political parties. The board of Wates includes one woman. She is Deena Mattar an independent non-executive director who was appointed in February 2013 and is chairman of its audit committee and a member of its remuneration committee.

Laura Pidcock, shadow minister of Business, Energy and Industrial Strategy, said: "On the face of it, this appointment flies in the face of Theresa May’s promise that her government would not be driven by the interests of the rich and powerful."

Pidcock also commented in a tweet, "James Wates, someone who has donated £450,000 to the Tory Party, is announced as chair of Theresa May's  new corporate governance review...do you ever get the feeling that the Conservatives aren’t taking this very seriously?"

Wates is leading a group made of representatives from the Institute of Directors, the Confederation of British Industry, the Institute for Family Business, the British Private Equity & Venture Capital Association, the Institute of Business Ethics, the Investment Association, the Climate Disclosure Standards Board, ICSA: the Governance Institute and the Trades Union Congress. The Financial Reporting Council (FRC) is acting as secretariat of the group.

The FRC said the principles being developed by the group will aim to promote:

• best practice in corporate governance and reporting arrangements,
• public trust and confidence through greater transparency in the manner in which large privately-owned companies conduct their business,
• strong corporate culture and integrity within large private businesses encourage broader consideration of workforce and wider stakeholder representation and interests;
• investor, lender and crEditor confidence to facilitate long-term value and improved productivity.

Commenting on the appointment, Sir Winfried Bischoff, Chairman of the FRC said: “James Wates brings the background skills, experience and independence to lead the development of corporate governance principles for large privately owned companies. These principles will encourage greater transparency among private businesses by considering the needs of all stakeholders including, staff, customers, suppliers as well as shareholders for the further benefit of the UK economy."