Posted on 5th December 2016
GREEN PAPER ON CORPORATE GOVERNANCE REFORM
I am today publishing a green paper on corporate governance reform. A copy of the paper is enclosed, and I am also placing copies in the libraries of the House. Responses are invited by 17th February 2017.
The UK has a deserved reputation as a dependable and confident place in which to do business. Our legal system, our framework of company law and our standards of corporate governance have long been admired around the world but our strong reputation can only be maintained if government and business regularly reviews and upgrades those standards. Ordinary working people – who work hard for their living – deserve to have confidence that businesses act responsibly and fairly. In some cases we have seen that the actions of a very small number of businesses can undermine the reputation of British business generally, whose standards are among the highest in the world. This green paper is designed to frame and stimulate a conversation with businesses, investors, employees, consumers and others, on what further steps may be taken to address these problems and maintain the UK’s reputation for strong and transparent corporate governance.
In particular, the paper seeks views on options to update our corporate governance framework in the following areas:
– First, on shareholder influence over executive pay and wider transparency;
– Second, on how to increase the connection between boards of directors and other groups with an interest in corporate performance such as employees, customers and suppliers;
– Third, whether some of the features of corporate governance that have served us well with our listed companies should be extended to the largest privately-held companies.
These are issues which are about competitiveness, and creating the right conditions for investment, as much as they are issues about fairness. We are determined to build an economy that works for everyone, and make Britain one of the best places in the world to work, to invest and to do business. For Britain to thrive in a global economy, we need to support strong businesses that focus on long-term value creation and command public confidence and respect. I warmly welcome the views of Parliament, companies, investors, employees, consumers and others with an interest on the options for corporate governance reform we are setting out today.
Rt Hon Greg Clark MP
Secretary of State for Business, Energy and Industrial Strategy
"The BHBPA is the most effective and dynamic business organisation I have ever worked with in over 30 years in Local Government. It has a very active and large membership whose points of view are taken seriously by all government structures. Peter Liddell does an excellent job in providing unique and enjoyable networking opportunities where members interact and discuss points of mutual interest. It provides a forum for businesses to discuss common issues, to share experiences and to play a powerful and meaningful role in the Burgess Hill community. The BHBPA provides important and credible support for all its members and ensures that their best interests are represented where necessary. "
"If Carlsberg did networking they would do it the BHBPA way. Each event is packed with great ideas, thought provoking presentations and fun. As a small business we feel supported and part of the community. We have built friendships and business relationships and there is always plenty of advice on hand to benefit us all so don’t hesitate to join whatever the nature of your business. "
"The BHBPA is an energetic and vocal organisation that connects and empowers and informs the local business community acting as an effective conduit to local authority and other organisations. We are proud to be part of that community and the association."
"This association was started with a lot of effort from a few local businessmen and has proved to be a very powerful and useful tool for our business. The BHBPA has influence at the top level; when action is needed, the BHBPA gets it done. We are kept in touch with all that is happening on our doorstep and will often act because of what is published in the weekly emails / newsletters."