- Slaughter & May, A Guide to Takeovers in the United Kingdom (2017)
- Suresh Nallareddy, Robert Pozen & Shivaram Rajgopal, Consequences of Mandatory Quarterly Reporting: The U.K. Experience (2017)
… We exploit the start of mandatory quarterly reporting by the Financial Conduct Authority (FCA) in 2007 and the end of the requirement in 2014 in the United Kingdom to examine corporate and capital market behavior. After imposition of mandatory quarterly reporting in 2007, we find (i) a dramatic decline in the number of companies that issue reports with quantitative information (defined as including both sales and earnings numbers for the quarter); (ii) a substantial increase in companies announcing managerial guidance for the upcoming year’s earnings or sales; and (iii) an increase in analyst following for all sample companies. However, using a difference-in-differences analysis, we find that the imposition of mandatory quarterly reporting has virtually no impact on firms’ investment decisions. Companies that voluntarily moved back from quarterly to semi-annual reporting after 2014 have experienced a reduction in analyst coverage, but no detectable increases in their levels of corporate investments.
- The Financial Reporting Council, Developments in Corporate Governance and Stewardship 2016 (Jan. 2017)
- Robert Goddard, UK: Amending the Takeover Code – four instruments published
- Clearly Gottlieb Steen & Hamilton, Staying Neutral – UK Supreme Court Re-emphasizes Primacy of Board Neutrality When Battles for Corporate Control Arise
- ‘Short-termism in UK public companies – implications, evidence and policy options’, The Centre for Corporate and Commercial Law, Cambridge
The Financial Conduct Authority has published a range of proposals to strengthen the position of minority shareholders in premium listed companies where there is a controlling shareholder: see here (pdf). Included are additional voting rights for minority shareholders regarding the appointment of independent directors. It will also be mandatory for premium listed companies with a controlling shareholder to have an agreement in place setting out certain undertakings regarding the independence of the company’s business from that of the controlling shareholder.
The Financial Services (Banking Reform) Bill completed the committee stage in the House of Lords earlier this week: see here. It now proceeds to report stage (the date has not been fixed). A copy of the Bill, as amended at committee stage, is available here or here (pdf). The Bill contains, amongst other things, the framework for the ring-fencing of banking activities.
A new edition of the City Code on Takeovers and Mergers comes into force [as of 30 September 2013]: see here (pdf). This new edition includes the amendments announced by the Code Committee in May (see here, pdf) and July (see here, pdf). One of the amendments concerns the reach of the Code: a company which has its registered office in the UK, the Channel Islands or the Isle of Man and whose securities are admitted to trading on a multilateral trading facility in the UK will no longer be required to have its place of central management and control in the UK, the Channel Islands or the Isle of Man in order for the Code to apply.