979:
19:
673:
corporate governance for their members, through informal but direct communication with management. Individual shareholders form an increasingly small part of total investments, while foreign investment and institutional investor ownership have grown their share steadily over the last forty years. Institutional investors, who deal with other peoples' money, are bound by
568:
It is possible for companies to create different classes of shares to provide different groups of shareholders with different shareholder rights. For example, different shareholder rights could be given to different groups of shareholders such as founders, investors and employees. The shareholders
672:
from the returns on shares. Historically institutions have often not voted or participated in general meetings on their beneficiaries' behalf, and often display an uncritical pattern of supporting management. However, institutional investors also often work "behind the scenes" to secure better
569:
rights capable of variation include: dividend rights, voting tights and capital rights. Capital rights are the right to receive capital following a sale of the company, liquidation or upon an asset sale. It is common to see different rights for different shareholders and preferences.
45:, shareholders are overwhelmingly large institutional investors, such as pension funds, insurance companies, mutual funds or similar foreign organisations. UK shareholders have the most favourable set of rights in the world in their ability to control directors of corporations.
461:
this confers, shareholders typically gain a comprehensive set of governance rights under a constitution. While not technically required, shareholders invariably possess exclusive voting rights, in contrast to many other
European jurisdictions which require that employees
693:(the corporate governance watchdog), reinforces the duty on institutions to actively engage in governance affairs by disclosing their voting policy, voting record and voting. The aim is to make directors more accountable, at least, to investors of capital.
557:. Other transactions where directors have a conflict of interest that require binding approval of shareholders are ratification of corporate opportunities, large self dealing transactions and service contracts lasting over two years.
383:
139:
894:
CA 2006 ss 366–368 and 378 require a resolution, itemising the money to be donated, be passed by shareholders for any political contributions over £5000 in 12 months, lasting a maximum of four years.
511:
Shareholders will habitually have the right to change the company's constitution with a three quarter majority vote, unless they have chosen to entrench the constitution with a higher threshold.
602:
945:
243:
233:
223:
169:
248:
174:
753:
AC 1099, holding that a company's articles could allow a shareholder's votes to triple if facing removal as a director. This followed the Cohen Report's recommendations.
391:
159:
523:, and can circulate suggestions for resolutions with support of 5 per cent of the total vote, or any one hundred other shareholders holding over £100 in shares each.
553:
Categories of important decisions, such as large asset sales, approval of mergers, takeovers, winding up of the company, any expenditure on political donations, and
826:
387:
238:
466:(i.e. have the right to elect some of) the members of the board. In this way, and also because of the additional mandatory rights shareholders enjoy under the
967:
905:
1526:
975:
830:
184:
480:
492:, as voters in the general meeting of public companies, shareholders have the mandatory right to remove directors by a simple majority, now under
882:
580:
644:
Despite habitually occupying the most privileged position in UK corporate governance, shareholders in large public companies listed on the
616:
100:
839:
960:
783:
367:
129:
111:
134:
115:
953:
328:
1516:
1105:
1400:
164:
779:
377:
371:
821:
594:
500:
260:
211:
918:
See BS Black and JC Coffee, 'Hail
Britannia?: Institutional Investor Behavior Under Limited Regulation' (1994)
665:
458:
216:
402:
353:
1250:
707:
357:
1290:
690:
56:
change the company constitution with a three quarter vote (unless a higher figure is in the constitution)
1245:
470:, the UK is a "shareholder friendly" jurisdiction relative to its European and American counterparts.
1165:
485:
443:
1335:
1085:
1030:
731:
520:
457:
Shareholders provide an essential source of capital investment to corporations, and because of the
807:, or the "executive" of the company that carries out all functions of management, rather than the
1375:
1225:
1075:
649:
412:
861:
CA 2006 s 303, as amended by
Companies (Shareholders' Rights) Regulations 2009/1632 Pt 2, reg 4
811:
or supervisory council, which appoints it and is in turn elected by shareholders and employees.
313:
85:
1521:
1285:
1205:
645:
447:
23:
1380:
1280:
1065:
879:
727:
639:
407:
337:
8:
1200:
1120:
499:
By comparison, in
Germany, and in most American companies (predominantly incorporated in
323:
1445:
1305:
1300:
1275:
1015:
787:
767:
763:
678:
609:
587:
573:
489:
467:
417:
318:
283:
228:
27:
65:
veto by a majority any restriction on ability to freely trade their shares, such as a
1425:
1315:
1040:
298:
1465:
1365:
1150:
852:
CA 2006 s 283 (special resolution definition), ss 21–22 (amending the constitution)
686:
635:
560:
Companies cannot make political donations without approval of the general meeting.
554:
73:
664:, own most shares. Thousands or perhaps millions of persons, particularly through
1235:
1215:
1020:
771:
749:
333:
38:
1470:
1390:
1350:
1265:
988:
983:
978:
702:
661:
421:
46:
1510:
1450:
1345:
1340:
1320:
1175:
1170:
1110:
1025:
1010:
1005:
293:
268:
179:
66:
1475:
1435:
1430:
1410:
808:
800:
653:
272:
119:
1330:
1140:
1070:
1055:
1035:
669:
657:
463:
349:
123:
89:
603:
Cumbrian
Newspapers Group Ltd v Cumberland & Westmoreland Herald Ltd
1485:
1385:
682:
538:
532:
431:
397:
361:
194:
155:
1490:
1415:
1395:
1370:
1260:
1195:
1130:
674:
380:
264:
18:
1480:
1460:
1420:
1325:
1255:
1180:
1160:
1115:
1100:
1090:
1060:
919:
834:
804:
743:
In closely held, private companies, the mandatory removal right in
519:
Shareholders with support of 5 per cent of the total vote can call
308:
189:
151:
72:
Shareholders also owe one another duties, and owe duties under the
1495:
1440:
1355:
1270:
1240:
1230:
1185:
1145:
1125:
744:
542:
493:
303:
42:
1295:
1210:
1190:
1155:
1135:
1050:
747:
s 168 is qualified by the majority House of Lords decision in
59:
wind up (i.e. liquidate) the company with a three quarter vote
1455:
1405:
1310:
1095:
1045:
278:
53:
remove the board of directors with a simple majority of votes
1360:
1220:
426:
62:
veto any sale of a significant percentage of company assets
41:
in UK companies. In large companies, such as those on the
288:
1080:
1000:
199:
545:
section 439. For the time being, this is non-binding.
503:) directors can only be removed for a "good reason".
986:companies of the United Kingdom →
681:and obligations to exercise care deriving from the
1508:
776:Report of the Committee on Company Law Amendment
481:Report of the Committee on Company Law Amendment
648:infrequently exercise their governance rights.
384:Association of Unit Trust and Investment Funds
140:Pensions & Investment Research Consultants
961:
617:Russell v Northern Bank Development Corp Ltd
101:American Association of Individual Investors
840:The Modern Corporation and Private Property
581:Citco Banking Corporation NV v Pusser's Ltd
548:
514:
1527:Corporate governance in the United Kingdom
968:
954:
833:(1957); for a comprehensive critique, see
382:at 65 Kingsway (est 2002 from a merger of
343:
368:Association of Investment Trust Companies
130:Association of Member Nominated Trustees
112:Association of Member Nominated Trustees
17:
206:Largest public service UK pension funds
79:
1509:
677:obligations, deriving from the law of
949:
624:
452:
135:National Association of Pension Funds
116:National Association of Pension Funds
37:are people and organisations who buy
563:
437:
329:The Equitable Life Assurance Society
770:, following recommendations of the
49:gives shareholders the ability to,
13:
1401:Scottish Mortgage Investment Trust
766:, section 303, implemented in the
254:
165:Universities Superannuation Scheme
35:Shareholders in the United Kingdom
14:
1538:
937:
378:Investment Management Association
372:Investment Management Association
977:
920:92 Michigan Law Review 1997–2087
822:Delaware General Corporation Law
595:Greenhalgh v Arderne Cinemas Ltd
526:
146:Largest private UK pension funds
105:
76:to exercise their voting power.
912:
897:
888:
786:, 'The Cohen Report' (1945) 58
506:
261:Association of British Insurers
212:Local Government Pension Scheme
873:
864:
855:
846:
814:
793:
756:
737:
720:
217:London Pensions Fund Authority
94:
1:
928:
403:Open-ended investment company
354:Open-ended investment company
1251:International Airlines Group
708:Shareholder Rights Directive
473:
386:, renamed in 1993 after the
358:Collective investment scheme
244:Firefighters' Pension Scheme
234:Civil Service Pension Scheme
170:British Coal Pension Schemes
7:
1291:London Stock Exchange Group
696:
691:Financial Reporting Council
629:
249:Armed Forces Pension Scheme
10:
1543:
1517:United Kingdom company law
1246:Intermediate Capital Group
1166:F & C Investment Trust
633:
530:
441:
365:
347:
258:
175:Electricity Supply Pension
109:
98:
83:
996:
444:Foreign Direct Investment
392:Fund Managers Association
160:Hermes Pension Management
1336:Pershing Square Holdings
1226:IHG Hotels & Resorts
1086:British American Tobacco
1031:Associated British Foods
732:Codetermination Act 1976
713:
549:Significant transactions
515:Meetings and resolutions
224:Teachers’ Pension Scheme
1076:Berkeley Group Holdings
650:Institutional investors
413:Jupiter Fund Management
344:Mutual investment funds
314:Royal & SunAlliance
827:Campbell v. Loews, Inc
803:1965 §76. This is the
388:Unit Trust Association
86:Institutional investor
31:
1286:LondonMetric Property
1206:Hikma Pharmaceuticals
726:e.g. in Germany, the
689:2010, drafted by the
646:London Stock Exchange
484:, chaired in 1945 by
448:Sovereign Wealth Fund
239:Police Pension Scheme
24:London Stock Exchange
21:
1281:Lloyds Banking Group
1066:Barratt Developments
728:Mitbestimmungsgesetz
640:Shareholder activism
408:Fidelity Investments
338:Lloyds Banking Group
80:Types of shareholder
1301:Marks & Spencer
1276:Legal & General
1201:Hargreaves Lansdown
1121:Croda International
541:of directors under
459:bargaining position
418:M&G Investments
324:RSA Insurance Group
284:Legal & General
1446:Standard Chartered
1426:Smith & Nephew
1306:Melrose Industries
909:(1995) 127 ALR 417
906:Gambotto v WCP Ltd
870:CA 2006 ss 304–305
788:Harvard Law Review
768:Companies Act 1947
764:Companies Act 1985
625:Shareholder duties
610:Companies Act 2006
588:Companies Act 2006
574:Companies Act 2006
490:Companies Act 1947
468:Companies Act 2006
453:Shareholder rights
390:est 1959, and the
229:NHS Pension Scheme
32:
28:Paternoster Square
1504:
1503:
1041:Auto Trader Group
991:
576:, ss 21(1) and 25
564:Classes of shares
537:Shareholder have
438:Foreign investors
299:Friends Provident
1534:
1466:United Utilities
1366:Rentokil Initial
1151:Endeavour Mining
987:
982:
981:
970:
963:
956:
947:
946:
922:
916:
910:
901:
895:
892:
886:
877:
871:
868:
862:
859:
853:
850:
844:
818:
812:
797:
791:
760:
754:
741:
735:
724:
687:Stewardship Code
636:Stewardship Code
185:Railway Pensions
74:Stewardship Code
1542:
1541:
1537:
1536:
1535:
1533:
1532:
1531:
1507:
1506:
1505:
1500:
1271:Land Securities
1236:Imperial Brands
1216:Howdens Joinery
992:
976:
974:
940:
931:
926:
925:
917:
913:
902:
898:
893:
889:
878:
874:
869:
865:
860:
856:
851:
847:
819:
815:
798:
794:
772:Cohen Committee
761:
757:
750:Bushell v Faith
742:
738:
725:
721:
716:
699:
662:insurance funds
642:
634:Main articles:
632:
627:
566:
551:
535:
529:
517:
509:
476:
455:
450:
442:Main articles:
440:
374:
364:
348:Main articles:
346:
334:Scottish Widows
275:
259:Main articles:
257:
255:Insurance funds
126:
110:Main articles:
108:
103:
97:
92:
82:
12:
11:
5:
1540:
1530:
1529:
1524:
1519:
1502:
1501:
1499:
1498:
1493:
1488:
1483:
1478:
1473:
1468:
1463:
1458:
1453:
1448:
1443:
1438:
1433:
1428:
1423:
1418:
1413:
1408:
1403:
1398:
1393:
1388:
1383:
1378:
1373:
1368:
1363:
1358:
1353:
1348:
1343:
1338:
1333:
1328:
1323:
1318:
1313:
1308:
1303:
1298:
1293:
1288:
1283:
1278:
1273:
1268:
1263:
1258:
1253:
1248:
1243:
1238:
1233:
1228:
1223:
1218:
1213:
1208:
1203:
1198:
1193:
1188:
1183:
1178:
1173:
1168:
1163:
1158:
1153:
1148:
1143:
1138:
1133:
1128:
1123:
1118:
1113:
1108:
1103:
1098:
1093:
1088:
1083:
1078:
1073:
1068:
1063:
1058:
1053:
1048:
1043:
1038:
1033:
1028:
1023:
1018:
1016:Anglo American
1013:
1008:
1003:
997:
994:
993:
973:
972:
965:
958:
950:
944:
943:
939:
938:External links
936:
935:
934:
930:
927:
924:
923:
911:
896:
887:
872:
863:
854:
845:
837:and GC Means,
813:
792:
755:
736:
718:
717:
715:
712:
711:
710:
705:
703:UK company law
698:
695:
631:
628:
626:
623:
622:
621:
613:
607:
599:
591:
585:
577:
565:
562:
555:share buybacks
550:
547:
531:Main article:
528:
525:
516:
513:
508:
505:
475:
472:
454:
451:
439:
436:
435:
434:
429:
424:
422:Prudential plc
415:
410:
405:
400:
395:
345:
342:
341:
340:
331:
326:
321:
316:
311:
306:
301:
296:
291:
286:
281:
256:
253:
252:
251:
246:
241:
236:
231:
226:
221:
220:
219:
208:
207:
203:
202:
197:
192:
187:
182:
177:
172:
167:
162:
148:
147:
143:
142:
137:
132:
107:
104:
96:
93:
81:
78:
70:
69:
63:
60:
57:
54:
47:UK company law
9:
6:
4:
3:
2:
1539:
1528:
1525:
1523:
1520:
1518:
1515:
1514:
1512:
1497:
1494:
1492:
1489:
1487:
1484:
1482:
1479:
1477:
1474:
1472:
1469:
1467:
1464:
1462:
1459:
1457:
1454:
1452:
1451:Taylor Wimpey
1449:
1447:
1444:
1442:
1439:
1437:
1434:
1432:
1429:
1427:
1424:
1422:
1419:
1417:
1414:
1412:
1409:
1407:
1404:
1402:
1399:
1397:
1394:
1392:
1389:
1387:
1384:
1382:
1379:
1377:
1374:
1372:
1369:
1367:
1364:
1362:
1359:
1357:
1354:
1352:
1349:
1347:
1346:Phoenix Group
1344:
1342:
1339:
1337:
1334:
1332:
1329:
1327:
1324:
1322:
1321:NatWest Group
1319:
1317:
1316:National Grid
1314:
1312:
1309:
1307:
1304:
1302:
1299:
1297:
1294:
1292:
1289:
1287:
1284:
1282:
1279:
1277:
1274:
1272:
1269:
1267:
1264:
1262:
1259:
1257:
1254:
1252:
1249:
1247:
1244:
1242:
1239:
1237:
1234:
1232:
1229:
1227:
1224:
1222:
1219:
1217:
1214:
1212:
1209:
1207:
1204:
1202:
1199:
1197:
1194:
1192:
1189:
1187:
1184:
1182:
1179:
1177:
1174:
1172:
1171:Frasers Group
1169:
1167:
1164:
1162:
1159:
1157:
1154:
1152:
1149:
1147:
1144:
1142:
1139:
1137:
1134:
1132:
1129:
1127:
1124:
1122:
1119:
1117:
1114:
1112:
1111:Compass Group
1109:
1107:
1106:Coca-Cola HBC
1104:
1102:
1099:
1097:
1094:
1092:
1089:
1087:
1084:
1082:
1079:
1077:
1074:
1072:
1069:
1067:
1064:
1062:
1059:
1057:
1054:
1052:
1049:
1047:
1044:
1042:
1039:
1037:
1034:
1032:
1029:
1027:
1026:Ashtead Group
1024:
1022:
1019:
1017:
1014:
1012:
1011:Airtel Africa
1009:
1007:
1006:Admiral Group
1004:
1002:
999:
998:
995:
990:
985:
980:
971:
966:
964:
959:
957:
952:
951:
948:
942:
941:
933:
932:
921:
915:
908:
907:
900:
891:
884:
881:
876:
867:
858:
849:
842:
841:
836:
832:
829:
828:
824:s 141(k) and
823:
817:
810:
806:
802:
796:
789:
785:
781:
777:
773:
769:
765:
759:
752:
751:
746:
740:
733:
729:
723:
719:
709:
706:
704:
701:
700:
694:
692:
688:
684:
680:
676:
671:
670:beneficiaries
667:
663:
659:
655:
654:pension funds
651:
647:
641:
637:
619:
618:
614:
611:
608:
605:
604:
600:
597:
596:
592:
589:
586:
583:
582:
578:
575:
572:
571:
570:
561:
558:
556:
546:
544:
540:
534:
527:Executive pay
524:
522:
512:
504:
502:
497:
496:section 168.
495:
491:
488:, led to the
487:
483:
482:
471:
469:
465:
460:
449:
445:
433:
430:
428:
425:
423:
419:
416:
414:
411:
409:
406:
404:
401:
399:
396:
393:
389:
385:
381:
379:
376:
375:
373:
369:
363:
359:
355:
351:
339:
335:
332:
330:
327:
325:
322:
320:
317:
315:
312:
310:
307:
305:
302:
300:
297:
295:
294:Standard Life
292:
290:
287:
285:
282:
280:
277:
276:
274:
270:
269:Insurance law
266:
262:
250:
247:
245:
242:
240:
237:
235:
232:
230:
227:
225:
222:
218:
215:
214:
213:
210:
209:
205:
204:
201:
198:
196:
193:
191:
188:
186:
183:
181:
180:NatWest Group
178:
176:
173:
171:
168:
166:
163:
161:
157:
153:
150:
149:
145:
144:
141:
138:
136:
133:
131:
128:
127:
125:
121:
117:
113:
106:Pension funds
102:
91:
87:
77:
75:
68:
64:
61:
58:
55:
52:
51:
50:
48:
44:
40:
36:
29:
25:
20:
16:
1522:Shareholders
1436:Spirax Group
1431:Smiths Group
1411:Severn Trent
914:
904:
899:
890:
883:Listing Rule
875:
866:
857:
848:
838:
831:134 A.2d 852
825:
816:
809:Aufsichtsrat
801:Aktiengesetz
795:
775:
758:
748:
739:
722:
658:mutual funds
652:, including
643:
620:3 All ER 161
615:
601:
598:1 All ER 512
593:
579:
567:
559:
552:
536:
518:
510:
507:Constitution
498:
479:
477:
456:
319:Royal London
273:UK insurance
120:Pension fund
71:
34:
33:
15:
1471:Unite Group
1391:J Sainsbury
1381:Rolls-Royce
1056:BAE Systems
1036:AstraZeneca
1021:Antofagasta
762:Previously
464:codetermine
350:Mutual fund
124:UK pensions
95:Individuals
90:Shareholder
67:poison pill
1511:Categories
1486:Weir Group
1386:Sage Group
1351:Prudential
1266:Kingfisher
929:References
685:. Now the
683:common law
612:, ss 22–24
590:ss 629–633
584:2 BCLC 483
539:say on pay
533:Say on pay
486:Lord Cohen
478:Since the
432:Old Mutual
420:, part of
398:Unit trust
366:See also:
362:Hedge fund
336:, part of
195:Lloyds TSB
156:Royal Mail
99:See also:
84:See also:
1491:Whitbread
1396:Schroders
1376:Rio Tinto
1371:Rightmove
1341:Persimmon
1261:JD Sports
1176:Fresnillo
1131:Darktrace
675:fiduciary
474:Elections
265:Insurance
1481:Vodafone
1461:Unilever
1421:DS Smith
1256:Intertek
1181:Glencore
1161:Experian
1116:Convatec
1101:Centrica
1091:BT Group
1061:Barclays
989:FTSE 250
984:FTSE 100
835:AA Berle
805:Vorstand
780:Cmd 6659
697:See also
666:pensions
630:Activism
521:meetings
501:Delaware
309:Brit plc
190:Barclays
1356:Reckitt
1331:Pearson
1296:M&G
1241:Informa
1146:EasyJet
1141:Diploma
1071:Beazley
1051:B&M
784:EM Dodd
778:(1945)
745:CA 2006
543:CA 2006
494:CA 2006
304:Allianz
43:FTSE100
1476:Vistry
1211:Hiscox
1191:Haleon
1156:Entain
1136:Diageo
843:(1932)
782:. See
730:1976 (
679:trusts
668:, are
360:, and
271:, and
122:, and
39:shares
1456:Tesco
1416:Shell
1406:Segro
1311:Mondi
1196:Halma
1096:Bunzl
1046:Aviva
714:Notes
279:Aviva
1361:RELX
1326:Next
1221:HSBC
880:UKLA
820:See
799:See
790:1258
660:and
638:and
606:Ch 1
446:and
427:HSBC
370:and
158:and
88:and
22:The
1496:WPP
1441:SSE
1231:IMI
1186:GSK
1126:DCC
903:cf
885:10.
289:AXA
26:at
1513::
1081:BP
1001:3i
774:,
656:,
356:,
352:,
267:,
263:,
200:BP
154:,
152:BT
118:,
114:,
969:e
962:t
955:v
734:)
394:)
30:.
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
