UK companies are set for a shake-up after a report called on non-executive directors to play a more "demanding" role.

The reforms aim to ensure no repeat of Enron-style corporate scandals by putting more focus on those directors without day-to-day responsibilities.

At least half of a company's board should be made up of independent non-executive directors, the Government-sponsored Higgs report said.

The measures, which have been broadly welcomed by industry leaders, aim to stamp on suspicions that posts at UK plcs are filled through an "old boy network" and that directors hold too many roles at different companies.

Non-executives will be recommended to serve two three-year terms while a fulltime director is advised to take on only one non-executive position elsewhere.