On 29 November 2016 the Department for Business, Energy & Industrial Strategy (BEIS) published a Green paper on Corporate Governance. The Business, Innovation, and Skills Committee launched an inquiry on Corporate Governance in September 2016.
The consultation covers three main areas:
“This Green Paper is designed to stimulate a debate on a range of options for strengthening the UK’s corporate governance framework, including options for increasing shareholder influence over executive pay and strengthening the employee, customer and supplier voice at boardroom level.
The Government does not have preferred options at this stage. We want to use responses to the Green Paper to help us understand the strengths and weaknesses of the different options and build a better evidence base before deciding which of them to develop further. We also welcome other suggestions to help address the corporate governance challenges facing us.”
The Government published its response to the green paper on 29 August 2017 with an accompanying press release entitled World-leading package of corporate governance reforms announced to increase boardroom accountability and enhance trust in business. The FRC issued a press release welcoming the Government's response.
Iain Wright MP, Chair of the Business, Energy and Industrial Strategy Committee, highlighted sessions that relate to the areas covered by the consultation:
6 December - the BEIS Committee’s Corporate Governance Inquiry held an evidence session exploring the issue of executive pay. The Committee’s corporate governance inquiry is focusing on executive pay, directors’ duties, and the composition of boardrooms, including worker representation and gender balance.
14 December, the BEIS Committee questioned Greg Clark, Secretary of State, on executive pay, corporate governance, and the options set out in the Green Paper as part of an evidence session looking across the business, energy and industrial strategy portfolio.
20 December - the BEIS Committee examined the issue of Boardroom diversity - looking at issues such as worker representation, increasing the number of women at executive level, and boosting the ethnic diversity of board members.
24 January 2017 - the Committee's session looked at shareholder engagement and executive remuneration