It then asks whether shareholder value would in fact have been enlightened by the OFR, given the institutional context in which it would have operated. While there are considerable grounds for scepticism about whether the OFR would have worked as the CLR expected, it is unfortunate that it was...
The enlightened shareholder value principle (ESV) was formulated during the comprehensive review of UK company law by the Company Law Steering Group in the late 1990s and early 2000's and requires directors of companies to act in the collective best interests of shareholders. The principle was tak...
In the UK’s Companies Act 2006 the traditional shareholder value principle was modified by the introduction of the principle of enlightened shareholder value, the primary source of which is section 172(1). Included in this provision is a requirement for directors to have regard for the interests...
The UK banking sector just doesn’t do much business lending. I’ve long thought lack of competition is a key part of the story. The commercial banking sector has consolidated steadily over the decades – I’m old enough to remember some of those swallowed up, like Williams and Glyns and...
The three biggest enemies of creativity and innovation are usually growth, market research (one rarely has an innovative idea asking the public what they want) and shareholder value. Growth is extremely dangerous for creativity. Because the more your company grows, the more overheads you accumulate...
This article examines lawyers' responses to the Companies Act 2006, section 172, which controversially introduces the concept of enlightened shareholder value into the law of the UK, together with a non-exhaustive list of factors that directors must take into account when making decisions. It ...
The enlightened shareholder value principle (ESV) was formulated during the comprehensive review of UK company law by the Company Law Steering Group in the late 1990s and early 2000's and requires directors of companies to act in the collective best interests of shareholders. The principle was ...
In the UK's Companies Act 2006 the traditional shareholder value principle was modified by the introduction of the principle of enlightened shareholder value, the primary source of which is section 172(1). Included in this provision is a requirement for directors to have regard for the interests...
Section 172(1) of the Companies Act 2006 introduced the principle of enlightened shareholder value (ESV) to UK law. The provision imposes a duty on directors to act in good faith, in a manner that they consider will promote the success of the company for the benefit of shareholders. The ...
Consideration is given to the fact that the UK government has endeavoured to encourage less of a focus on short-termism and a greater focus on long-term approach. The paper discusses the government?s attempt to do this via the principle of ?enlightened shareholder value?. The paper then ...