Review on Corporate Governance and Short-Termism opens
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Vince Cable, Secretary of State for Business today launched a
review to consider whether there are failures in corporate governance
and the markets. He is calling on company directors, shareholders and
other investors to contribute their views.
The call for evidence launched today, ‘A Long Term Focus for
Corporate Britain’, aims to investigate issues including; the problems
of short-termism, investor engagement, directors’ remuneration and –
following on from last week’s announcement by the Takeover Panel – the
economic case for takeovers. It also asks:
- Do boards understand the long-term implications of
takeovers, and communicate the long-term implications of bids
- What are the implications of the changing nature of UK
share ownership for corporate governance and capital markets? Whether
disclosure of directors’ pay should be more transparent?
- Do shareholders and investors focus too much on the
Vince Cable, Business Secretary said:
“The UK has led the world in developing high standards of
corporate governance. The first stewardship rules for investors, the
first corporate governance framework for companies and the most
comprehensive takeover code.
"Now is the time to look to the future and take a wider view
on how these can work together. Well functioning capital markets are
vital to productivity, growth and the future prosperity of the UK.
"We need to ask ourselves what are the factors influencing
short-term decisions, the reasons for the growth of directors’ pay and
why economically damaging takeovers still take place? I recognise that
the best solutions will come from businesses and that regulation is not
the only option. That is why today I am calling on all companies and
individuals to put forward their ideas.”
The consultation will run for 12 weeks, from today until
Friday 14th January 2011.
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Article Published/Sorted/Amended on Scopulus 2010-10-26 15:11:26 in Business Articles