“Small Talk: Big Ideas”: Is the Takeover Code ready for reform?

Since the hostile acquisition of GKN by Melrose, issues around the effectiveness and appropriateness of the Takeover Code have re-surfaced. Many feel that the UK needs to reform its takeover rules to widen grounds for intervention, ensure that investors put long term value above short-term profit, or require directors of publicly listed companies to take into account broader responsibilities.

Elsewhere, corporate governance reform and section 172 reporting is encouraging directors to account for wider stakeholder perspectives in their decisions. This is often at odds during takeovers, where shareholder primacy can make it impossible for directors to reject generous takeover bids.

To discuss these issues, we held a roundtable with the Chair of the BEIS select committee Rachel Reeves, to explore perspectives of leading figures across the industry on takeover code reform.

This event has now passed. Many thanks once again to Rachel Reeves.

You can find a blog summary of the event here.