More teeth needed for corporate governance reform

Dr Dionysia Katelouzou, a lecturer in corporate law in The Dickson Poon School of Law has co-authored a response to a government Green Paper in collaboration with colleagues from the School of Management & Business - Dr Aditi Gupta and Dr Gerhard Schnyder.

Responding to the Department for Business, Energy & Industrial Strategy (BEIS) Green Paper on Corporate Governance Reform, the trio argue that stronger proposals are needed in order to fulfil the Government’s ambition to ‘build an economy that works for everyone’.

The paper also contends that to restore public faith in liberal capitalism, more fundamental reforms that the Government propose are needed, along with a reflection and true dialogue about the moral and ethical underpinnings of our economy.

In order to empower the either the existing or a reformed corporate governance system, the authors propose an eight-point reform agenda, which includes recommendations on areas such as executive pay, the remuneration committee, advisory stakeholder panels and an increase in dialogue between company executives and stakeholders.

Of the Green Paper, Dr Katelouzou commented: ‘If the Government is serious about its very ambitious goal for corporate governance reform, it will need to adopt reform proposals that have more teeth than what is currently being proposed.’

You can read the full response on the Social Science Research Network (SSRN) website.