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In good company?

03 February 2012 / David Greene
Issue: 7499 / Categories: Opinion , Company
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What does the future hold for shareholder democracy, asks David Greene

The hot topic of the week is the control that shareholders have over executives’ remuneration and bonuses. Vince Cable has joined the throng with fresh proposals for change. The idea, however, that increasing shareholders’ control over this aspect of the relationship between their company and its senior employees will serve some wider social good is illusory, notwithstanding politicians’ declarations to the contrary. If they want to achieve control of executive conduct by shareholders, the way in which that relationship works would have to shift radically. In any event, are shareholders willing, able, or indeed the right people, to exert such control?

Primary responsibility

Directors’ primary responsibility is to the company with which they have contractual and other obligations. Their additional common law duties to the company are set out in the Companies Act 2006 (CA 2006) at ss 170–181. Much was made of these new provisions, but commentators recognise that they merely repeat what was previously enforceable at common law.

Some

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MOVERS & SHAKERS

DWF—19 appointments

DWF—19 appointments

Belfast team bolstered by three senior hires and 16 further appointments

Cadwalader—Andro Atlaga

Cadwalader—Andro Atlaga

Firm strengthens leveraged finance team with London partner hire

Knights—Ella Dodgson & Rebecca Laffan

Knights—Ella Dodgson & Rebecca Laffan

Double hire marks launch of family team in Leeds

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Charlie Mercer and Astrid Gillam of Stewarts crunch the numbers on civil fraud claims in the English courts, in this week's NLJ. New data shows civil fraud claims rising steadily since 2014, with the King’s Bench Division overtaking the Commercial Court as the forum of choice for lower-value disputes
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