UK Government consults on short-termism in equity markets

The UK Government has begun a consultation process on corporate governance and short-termism. The project, A long-term focus for Corporate Britain, will consider what can be done to achieve long-term economic growth.

The first stage of the process was a call for evidence. Submissions closed in January 2011 and a summary of the evidence and the government’s proposals in response to it will be published by April 2012.

The call for evidence raised issues including:

  • the legal and regulatory structures that comprise the UK’s corporate governance framework
  • the board of directors
  • the role of shareholders in equity markets
  • directors’ remuneration
  • takeovers.

Progress on the consultation can be followed at the Department for Business Innovation and Skills website.

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