PARLIAMENTARY WRITTEN QUESTION
(20 March 2026)

To ask the Secretary of State for Business and Trade, what assessment his Department has made of whether the corporate governance framework incentivises short-term shareholder returns over long-term value creation for the wider economy.

Asked by:
Bobby Dean (Liberal Democrat)

Section 172 of the Companies Act 2006 enshrines in law the ‘enlightened shareholder value’ principle, in which directors must have regard in their decision-making to the long-term and to the impact of the company’s operations on the community and the environment. The UK Corporate Governance and Stewardship Codes also include principles that promote a focus on long-term value creation by business and institutional investors. The Government will shortly publish a ‘Modernising Corporate Reporting’ consultation which will give an opportunity to stakeholders to comment on UK corporate governance reporting and the wider governance framework, among other matters.

Answered by:
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