Takeovers: Legal Opinion

Department for Business, Energy and Industrial Strategy written question – answered on 25th November 2021.

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Photo of Gareth Thomas Gareth Thomas Shadow Minister (International Trade)

To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will review the effectiveness of the rules on disclosure of legal advisers’ fees during the takeover of a company limited by guarantee; and if she will make a statement.

Photo of Gareth Thomas Gareth Thomas Shadow Minister (International Trade)

To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will review the effectiveness of the rules on the disclosure of fees for providing lobbying or media advice during takeovers of companies limited by guarantee; and if he will make a statement.

Photo of Gareth Thomas Gareth Thomas Shadow Minister (International Trade)

To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will require all firms taking over a financial services business to disclose advisers fees regardless of the corporate structure governing the business; and if he will make a statement.

Photo of Paul Scully Paul Scully Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy), Minister of State (London)

While the Companies (Disclosure of Auditor Remuneration and Liability Limitation Agreements) Regulations 2008 require companies to disclose fees payable to the auditor for the audit of their financial statements, there is no requirement to disclose fees payable to professional advisers more broadly. These are properly a matter for the company and its members. The Department of Business, Energy and Industrial Strategy (BEIS) is committed to ensuring that the UK’s regulatory approach is proportionate, targeted, consistent, transparent, and optimised to support opportunities for UK businesses. The regulation of takeovers under the Companies Act and associated regulations is designed to protect the interests of shareholders and to safeguard their rights to information that will allow them to make an informed decision. We are confident the system functions effectively.

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