Companies Act 2006: Nominee Operators

Lord McFall of Alcluith Excerpts

Tuesday 13th January 2015 Lords Chamber

[Baroness Neville-Rolfe]

My Lords, the FRC corporate governance code already makes it clear that the board as a whole, which obviously includes the non-executive directors, has a responsibility to ensure satisfactory dialogue with shareholders. We believe that many companies and investors are already holding meetings of the kind that the noble Lord suggests, and we have encouraged such strategy discussions outside the formality of the AGM.

[Lord McFall of Alcluith (Lab)]

My Lords, the financial crisis illustrated that shareholder engagement was a sham. Is there not a case for the Government taking immediate action, forgetting about having any consultation on this and ensuring that the noble Lord’s reasonable request—that private shareholders receive these free accounts—can be done with a loud and clear message from the Chancellor of the Exchequer?

[Baroness Neville-Rolfe]

My Lords, I was very pleased to see the extension of ISAs to AIM. I am delighted that these questions have been asked today so that we are debating the issue. I am sure that noble Lords will be pleased to hear that we are looking into exactly what is needed with a view to taking action.