Written Question·Department for Business and Trade·UIN 122559

Corporate Governance

Tabled: 20 March 2026

Answered: 27 March 2026

Question

Bobby Dean

Liberal Democrat — Carshalton and Wallington

To ask the Secretary of State for Business and Trade, what assessment his Department has made of whether the corporate governance framework incentivises short-term shareholder returns over long-term value creation for the wider economy.

Answer

Blair McDougall

Section 172 of the Companies Act 2006 enshrines in law the ‘enlightened shareholder value’ principle, in which directors must have regard in their decision-making to the long-term and to the impact of the company’s operations on the community and the envi...

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