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Beyond shareholder primacy? Reflections on the trajectory of UK corporate governance.

Armour, J. and Deakin, S. and Konzelmann, Suzanne J. (2003) Beyond shareholder primacy? Reflections on the trajectory of UK corporate governance. British Journal of Industrial Relations 41 (3), pp. 531-555. ISSN 0007-1080.


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Core institutions of UK corporate governance, in particular the City Code on Takeovers and Mergers, the Combined Code on Corporate Governance and the law on directors’ duties, are strongly orientated towards the norm of shareholder primacy. Beyond the core, however, stakeholder interests are better represented, in particular at the intersection of insolvency and employment law. This reflects the influence of European Community laws on information and consultation of employees. In addition, there are signs that some institutional shareholders are redirecting their investment strategies, under government encouragement, away from a focus on short-term returns, in such a way as to favour stakeholder-inclusive practices by firms. On this basis we suggest that the UK system is currently in a state of flux and that the debate over shareholder primacy has not been concluded.

Item Type: Article
Additional Information: This article was published with the altered title ‘Shareholder primacy and the trajectory of UK corporate governance’.
Keyword(s) / Subject(s): corporate governance, stakeholding, hostile takeovers, company law, insolvency, employee representation, shareholder activism
School or Research Centre: Birkbeck Schools and Research Centres > School of Business, Economics & Informatics > Management
Depositing User: Sandra Plummer
Date Deposited: 01 Feb 2006
Last Modified: 17 Apr 2013 12:32

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