Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department is taking steps to help protect the interests of shareholders in investment trusts that are subject to hostile takeovers by overseas entities.

Listed companies such as listed investment trusts are subject to substantial corporate governance and shareholder protection requirements.

This includes fair treatment and orderly takeover requirements under the Takeover Code, which the independent Takeover Panel oversees. The Takeover Code applies where a person or company acquires 30% or more of voting rights in a company and ensures that all shareholders are afforded equivalent treatment.

More broadly, under the Companies Act 2006, shareholders must approve any resolutions circulated by a company, or by any individual shareholder or group of shareholders of that company, including proposed changes to company boards.