To ask Her Majesty's Government what is their response to the Law Society's recommendation in its July 2009 document EU Priorities for 2009–2014 for the creation of a “comply or explain” approach to corporate governance in the European Union single market. [HL3077]

The Government support the promotion of the effective use of “comply or explain” in corporate governance across the EU.

Used appropriately, such an approach can achieve high standards of corporate reporting and so assist shareholders in holding directors to account.