Asked by: Lord Lee of Trafford (Liberal Democrat - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government, further to the Written Answer by Baroness Jones of Whitchurch on 2 December (HL2621), what assessment they have made of the effect of directors of public companies failing to notify the market of a takeover approach by a serious bidder at a premium above the prevailing price on the position of selling shareholders, and of the implications for the transparency of public companies.
Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)
The Takeover Code, which has a statutory basis under the Companies Act 2006, sets out a clear and orderly framework for takeovers, including measures to ensure fairness to shareholders. The Code is issued and administered by the independent Panel on Takeovers and Mergers. The Panel has enforcement powers for breaches of the Code. Changes to the Code itself are a matter for the Panel.
Asked by: Lord Lee of Trafford (Liberal Democrat - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government whether they plan to review the duties of public company directors about informing shareholders when they receive a serious takeover approach.
Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)
The Government has no plans to review the duties of public company directors in relation to informing shareholders of a takeover approach. Directors owe a number of fiduciary duties to shareholders, including the need to exercise reasonable care, skill and diligence, and to promote the success of the company for the benefit of its shareholders as a whole.
Asked by: Lord Lee of Trafford (Liberal Democrat - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the case for regulating whether publicly listed companies should hold hybrid annual general meetings which enable shareholders to attend either in person or participate digitally.
Answered by Earl of Minto - Shadow Minister (Defence)
The Companies Act 2006 permits hybrid annual general meetings to be held. The format of annual general meetings is a matter for companies and their shareholders.
Asked by: Lord Lee of Trafford (Liberal Democrat - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what is the annual budget of the Competition and Markets Authority; and how many people it employs.
Answered by Earl of Minto - Shadow Minister (Defence)
The CMA resource budget for the 2023/24 financial year is £122m, and as of April 30th 2023 the CMA employed 898 staff.
The CMA publishes its Annual Report and Accounts publicly and will publish the accounts for 2022/2023 soon. Previous CMA Annual Reports and Accounts can be found online.