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BEIS publishes consultation on insolvency and corporate governance

Friday 25 May 2018

BEIS publishes consultation on insolvency and corporate governance

The Department for Business, Energy and Industrial Strategy (BEIS) has published a consultation on insolvency and corporate governance which can be viewed by clicking here.  

This consultation puts forward a number of measures to improve corporate governance in firms that are in or approaching insolvency.

It also seeks views on some other aspects of the wider corporate governance framework and whether these are working as they should.

There is a section headed ‘Strengthening Corporate Governance in Pre-Insolvency Situations’ which invites views on the following areas:

  • Group structures: are stronger corporate governance and transparency measures required in relation to the oversight and control of complex group structures?
  • Shareholder responsibilities: What more could be done through a revised Stewardship Code or other means to promote more engaged stewardship of UK companies by their investors, including the active monitoring of risk? Could existing investor initiatives to hold companies to account be strengthened (e.g. through developing the role of the Investor Forum)? Could better arrangements be made to ensure that lessons are learned from large company failings and controversies?
  • Dividends: are reforms required to the legal, governance and technical framework within which companies determine dividend payments? If so what reforms should be considered?
  • General: is the current corporate governance framework in the UK, particularly in relation to companies approaching insolvency, providing the right combination of high standards and low burdens?

It is possible to respond to the survey online by clicking here.

The Department for Business, Energy and Industrial Strategy (BEIS) has published a consultation on insolvency and corporate governance