Mr. Robert G. HughesTo ask the President of the Board of Trade when he will be publishing a consultative document on the Companies Act provisions under which shareholders may table resolutions for discussion at the annual general meeting. [25354]
§ Mr. OppenheimI have today published a consultative document seeking views on the provisions of the Companies Act relating to the circulation of shareholders' resolutions. This follows up the Government's undertaking to consult on the recommendation of the former Employment Committee in its report, "The Remuneration of Directors and Chief Executives of Privatised Utilities" that the Companies Act should be amended to require shareholders' resolutions, where they are supported by a sufficient number of shareholders and are limited in length, to be circulated by the company to all shareholders without cost.
409WThe consultative document seeks views on whether the existing rules operate effectively. It considers whether good practice in circulating shareholders' resolutions without charge should be incorporated into a statutory requirement and whether a tightening up of the rules would be appropriate. It also examines some related questions concerning the wider issue of communication between shareholders and the board.
Copies of the consultative document "Shareholder Communications at the Annual General Meeting" have been placed in the Libraries of both Houses.