A Long-Term Focus for Corporate Britain: A Call for Evidence
Open date: 25 Oct 2010
Closing date: 14 Jan 2011
Review into corporate governance and economic short-termism.
On 25th October 2010 the Secretary of State for Business Vince Cable launched the first stage of a review into corporate governance and economic short-termism by issuing a call for evidence. The review aimed to establish whether there are further issues affecting the functioning of capital markets and, if so, what the causes are. It considered the role of directors and shareholders and asked fundamental questions about shareholder engagement, market short-termism and the functioning of the investment chain in the UK. It also considered directors' remuneration and - following up the Takeover Panel's recent announcement - the economic case for takeovers.
The call for evidence closed on 14th January 2011. The full document and response form can be found below.
Update - September 2011
The consultation closed on 14 January. A summary of responses document was published in March 2011 and is available to view below.
The responses to the call for evidence identified a number of issues with short-termism in UK equity markets and of some agency problems in the investment chain. On that basis the Secretary of State asked Professor John Kay to conduct an independent review to examine investment in UK equity markets and its impact on the long-term performance and governance of UK quoted companies. The Kay Review will deliver an interim report on its findings in February 2012, and make recommendations to the Secretary of State in its final report in July 2012. This will inform future Government policy on addressing short-termism in equity markets and corporate governance more widely
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