Takeovers

Lord Oakeshott of Seagrove Bay
asked Her Majesty's Government:

In what respect the standards of compulsory public disclosure on employee relations, pensions, executive remuneration, risk management, corporate governance and social responsibility change once a publicly listed company has been acquired through a private company takeover; which of those changes are in the public interest; and whether they will review ways of reducing or ending such information gaps. [HL2075]

The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Truscott)
Effective disclosure is a fundamental principle of UK company law and listing rules. Financial and narrative reporting requirements were consulted on extensively in the formulation of the provisions in the Companies Act 2006. The differences in disclosure requirements between private and publicly listed companies exist to achieve an appropriate and proportionate degree of transparency between those companies which do not offer securities to the public, and those which do. All private companies, other than small companies, are required to produce a business review.