Mr David Walker, an Executive Director of the Bank, comments on some current issues of shareholder/company relations.
He starts by contrasting the Takeover Code, with its explicit recognition of shareholder interests, with US statutory provisions; and notes some possible implications of increased reliance on statute. He goes on to review the issues raised by the question of pre-emption rights, arguing for the need for flexibility to accommodate different approaches, subject to agreed guidelines and clear procedures for consultation with shareholders. Finally, he discusses the role of takeovers and mergers and, while fully recognising the constructive contribution that takeover activity can make to corporate efficiency, stresses the need for more effective board/shareholder accountability if the often excessively sharp correction represented by a takeover battle is to be avoided.
Takeovers and mergers: some major issues - Speech by Mr D A Walker