Kate Higgins, Partner in our Corporate Governance team, has been quoted in the September issue of Accounting and Business Magazine: 'Shifting Governance Rules' discussing the topic of recent listing reform.
She explains: "As regulation shrinks, new governance expectations may start to emerge".
In the context new weighted voting structures and abolition of the controlling shareholder requirement for a 'relationship agreement', Kate explains: "Where a company has a controlling shareholder or founder shareholders with weighted voting, there will likely be more investor focus on corporate governance systems."
She also highlights the role shareholders may still play in holding the executive to account despite the Financial Conduct Authority having removed the requirement for shareholder approval of class 1 transactions: "If you don’t consult your investor base and then go on an acquisition spree that the shareholders don’t like, or it all goes horribly wrong, investors are going to be considering a vote against executive or remuneration resolutions at your AGM."
Kate has written separately about the listing rule changes and the FRC's recent changes to the Corporate Governance Code, the topics covered by the AB Magazine article on our website. See below.
Related coverage:
AB Magazine - ACCA Global
A new era for London Listings (mishcon.com)
Corporate Governance – 2024 Code & Guidance now available