Companies Act 2006: Nominee Operators

Lord Lee of Trafford Excerpts

Tuesday 13th January 2015 Lords Chamber

[Baroness Neville-Rolfe]

My noble friend is entirely right. We expect the findings of our research by the end of March and we will therefore be able to proceed with appropriate steps quickly.

[Lord Lee of Trafford (LD)]

My Lords, given the pretty abysmal level of attendance at annual general meetings and the reluctance of those who attend to ask questions in a formal setting, would my noble friend consider encouraging public companies to hold a second, more relaxed meeting after the statutory one, essentially so that private shareholders can meet and question non-executive directors to encourage greater shareholder involvement?

[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.