Financial Services: Shareholder Engagement

Lord Naseby Excerpts

Wednesday 19th January 2011 Lords Chamber

[Lord Sassoon]

My Lords, the takeover panel operating independently keeps that issue and all other issues related to the good working of the takeover market under regular review. The department of business consultation, A Long-term Focus on Corporate Britain, which is currently calling for evidence, will be interested to hear what people have to say on that very topic.

[Lord Naseby]

Has my noble friend noted the recent statement from the Financial Reporting Council suggesting that annual reports shall no longer be printed? How does he think that will improve small shareholder engagement?

[Lord Sassoon]

My Lords, there is a fine balance to be struck between making sure that shareholders get all the information they require on the one hand, and on the other hand allowing companies to take advantage of electronic and other media to disseminate information in a way in which an increasing proportion of shareholders wish to receive that information and which may be environmentally friendly if it does not require large amounts of paper to be used. I am glad that the FRC is grappling with that issue.