The Department for Business, Innovation and Skills has published a consultation document “A Long-Term Focus for Corporate Britain”. This is the first step of a government review into economic short-termism and corporate governance in capital markets. Responses are to be received by 14 January 2011. Views are sought on issues such as:
- whether there is a problem with short-termism in the UK’s equity markets and if action is needed to encourage investors to take a long term view;
- should the shareholders of a company have a greater degree of control over directors’ remuneration; and
- do boards understand the long-term implications of takeovers and do they communicate such implications effectively?