Green Paper On Corporate Governance Reform
The Law Society submitted its response to the Department for Business, Energy and Industrial Strategy (BEIS) Green Paper on Corporate Governance Reform on 21 February.
BEIS sought views on:
- shareholder influence on executive pay;
- measures that could strengthen the connection between boards of directors and groups such as employees and small suppliers; and
- extending aspects of corporate governance applicable to listed companies to large privately-held companies.
The main points of the Law Society's extensive response were that the 'comply or explain' approach and the effective partnership in its application between the UK Listing Authority and the Financial Reporting Council has worked well and should be encouraged; and that recently enacted corporate governance reforms should be given enough time to take effect before making further changes.