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Motion to consider. Agreed to on question.
Motion to consider. Agreed to on question.
To ask the Secretary of State for Business and Trade, if he will make an assessment of the potential merits of amending company law to move from shareholder primacy towards a stakeholder-governance model.
To ask the Secretary of State for Business and Trade, if he will make an assessment of the potential merits of amending company law to move from shareholder primacy towards a stakeholder-governance model.
Under Section 172 of the Companies Act 2006, directors have a fiduciary duty to have regard in their decision-making to the interests of employees, customers and suppliers, and to the impact of the company’s operations on the community and the environment. Section 172 enshrines in law the principle of “enlightened shareholder value”, which recognises the relevance of stakeholder interests to the long-term success of a company. This contrasts with the “shareholder maximisation” model adopted in other jurisdictions, in which directors’ sole duty is to maximise returns to shareholders. The Government has no plans to amend Section 172.
To ask the Chancellor of the Exchequer, when her Department plans to bring forward the secondary legislation required under the Building Societies Act 1986 (Amendment) Act 2024 to enact provisions around further alignment with Companies Law on execution of documents and use of common seals.
To ask the Chancellor of the Exchequer, when her Department plans to bring forward the secondary legislation required under the Building Societies Act 1986 (Amendment) Act 2024 to enact provisions around further alignment with Companies Law on execution of documents and use of common seals.
The government is committed to supporting the growth of building societies in line with the manifesto commitment to double the size of the mutual and co-operative sector. As part of this, the government is committed to ensuring that building societies can operate in a modern and supportive legislative environment.
On 14 October 2024, the government introduced two statutory instruments to modernise the 1986 Act. The Building Societies Act 1986 (Amendment of Small Business Turnover Limit) Order 2024 came into force on 4 November 2024 and the Building Societies Act 1986 (Modifications) Order 2024 came into force on 6 January 2025.
The government will look to give effect to the powers enabled through the Building Societies Act 1986 (Amendment) Act 2024 in due course.
To ask the Secretary of State for Business and Trade, whether his Department plans to bring forward legislative proposals to ensure that company law prioritises stakeholder primacy over shareholder primacy.
To ask the Secretary of State for Business and Trade, whether his Department plans to bring forward legislative proposals to ensure that company law prioritises stakeholder primacy over shareholder primacy.
The Government welcomes suggestions on how to ensure companies consider wider stakeholder interests alongside the needs of stakeholders. As part of this, officials have engaged with industry-led reports such as the Demos report, "The Purpose Dividend" published in 2023.
Section 172 of the Companies Act 2006 enshrines in statute the "enlightened shareholder value" principle, which recognises that the long-term success of a company depends in part on the ongoing consideration of wider stakeholder interests. The Government believes that this allows companies to determine their purpose and priorities themselves. This contrasts with the "shareholder maximisation" principle underpinning directors' duties in some other jurisdictions, in which directors owe duty only to shareholders.
Details of Ministers' and Permanent Secretaries meeting with external individuals and organisations are published quarterly in arrears on GOV.UK.
To ask His Majesty's Government, further to the Written Answers by Baroness Jones of Whitchurchon 10 March (HL5234 and HL5235), whether they have taken account of the fact that the House of Commons Business, Energy, and Industrial Strategy Committee's report The Future of Audit, published on 26 March 2019, concluded that international...
To ask His Majesty's Government, further to the Written Answers by Baroness Jones of Whitchurchon 10 March (HL5234 and HL5235), whether they have taken account of the fact that the House of Commons Business, Energy, and Industrial Strategy Committee's report The Future of Audit, published on 26 March 2019, concluded that international...
The Government announced in the King's Speech its intention to publish a draft Audit Reform and Corporate Governance Bill that will transition the FRC to a new Audit, Reporting and Governance Authority and provide it with relevant powers. The Government will consider the recommendations of the report, including relating to the Government and FRC producing definitions and guidance on what constitutes distributable profits, as work progresses.
My Lords, we will support both of these instruments, and I will be brief. The first instrument is a straightforward and necessary increase in the disclosure powers of Companies House and, as the Minister has made clear, the SI extends disclosure powers to cover non-public organisations and specifies to whom...
My Lords, we will support both of these instruments, and I will be brief. The first instrument is a straightforward and necessary increase in the disclosure powers of Companies House and, as the Minister has made clear, the SI extends disclosure powers to cover non-public organisations and specifies to whom...
My Lords, I apologise for missing the first SI. I meant no discourtesy; it was an administrative error entirely of my own making, and I particularly apologise to the noble Lord, Lord Leong. However, I would have welcomed the regulations because, as Conservatives, we believe in good governance, personal responsibility...
My Lords, I apologise for missing the first SI. I meant no discourtesy; it was an administrative error entirely of my own making, and I particularly apologise to the noble Lord, Lord Leong. However, I would have welcomed the regulations because, as Conservatives, we believe in good governance, personal responsibility...
My Lords, in speaking to the information-sharing regulations, I shall also speak to the Companies and Limited Liability Partnerships (Protection and Disclosure of Information and
Consequential Amendments) Regulations 2024. These regulations are part of a series of statutory instruments designed to implement the reforms introduced by the Economic Crime and...
My Lords, in speaking to the information-sharing regulations, I shall also speak to the Companies and Limited Liability Partnerships (Protection and Disclosure of Information and
Consequential Amendments) Regulations 2024. These regulations are part of a series of statutory instruments designed to implement the reforms introduced by the Economic Crime and...
My Lords, I am very grateful for all contributions and I thank especially the noble Lord, Lord Sharpe, for supporting these regulations. As he knows, the work was undertaken by the previous Government and we have made it a legal entity and brought forward the power to implement the legislation....
My Lords, I am very grateful for all contributions and I thank especially the noble Lord, Lord Sharpe, for supporting these regulations. As he knows, the work was undertaken by the previous Government and we have made it a legal entity and brought forward the power to implement the legislation....
Lords motion to consider. Agreed to on question.
Lords motion to consider. Agreed to on question.
Motion to consider. Agreed to on question.
Motion to consider. Agreed to on question.