Shareholder Primacy and the Trajectory of UK Corporate Governance

John Armour, Simon F. Deakin, Suzanne J. Konzelmann
2003 Social Science Research Network  
Core institutions of UK corporate governance, in particular those relating to takeovers, board structure and directors' duties, are strongly orientated towards a norm of shareholder primacy. Beyond the core, in particular at the intersection of insolvency and employment law, stakeholder interests are better represented, thanks to European Community influence. Moreover, institutional shareholders are redirecting their investment strategies away from a focus on short-term returns, in such a way
more » ... ns, in such a way as to favour stakeholder-inclusive practices. We therefore suggest that the UK system is currently in a state of flux and that the debate over shareholder primacy has not been concluded. JEL Codes: D23, G32, G33, G34, K22, K31
doi:10.2139/ssrn.1930885 fatcat:6w4eu4yamjarfgyqtdtzlk3e5e