Shareholder Primacy and the Trajectory of UK Corporate Governance
Cambridge Centre for Business Research Working Paper No. 266
31 Pages Posted: 20 Sep 2011
Date Written: June 1, 2003
Abstract
Core institutions of UK corporate governance, in particular those relating to takeovers, board structure and directors’ duties, are strongly orientated towards a norm of shareholder primacy. Beyond the core, in particular at the intersection of insolvency and employment law, stakeholder interests are better represented, thanks to European Community influence. Moreover, institutional shareholders are redirecting their investment strategies away from a focus on short-term returns, in such a way as to favor stakeholder-inclusive practices. We therefore suggest that the UK system is currently in a state of flux and that the debate over shareholder primacy has not been concluded.
Keywords: corporate governance, stakeholding, hostile takeovers, company law, insolvency, employee representation, shareholder activism
JEL Classification: D23, G32, G33, G34, K22, K31
Suggested Citation: Suggested Citation
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