UK: the Protection of Shareholders Bill

In 1987 William Cash MP introduced into Parliament the Protection of Shareholders Bill. It did not become law. Twenty two years later he is trying again and will today hold a press conference to gain support for his new Protection of Shareholders Bill, the purpose of which is to give a greater voice to private shareholders (as opposed to the institutional shareholders, which hold the majority of UK listed company shares). 

The Bill will require all public companies to establish a Shareholders Committee unless the private shareholders decide otherwise. The members of the Committee will be elected, or re-elected, annually at the AGM, by a vote of the private shareholders. The Committee will meet with a nominated director at regular intervals and will have the same powers as the directors to communicate with the shareholders. The Bill has the support of the UK Shareholders Association, which has provided an overview of the Bill. It is unlikely to receive Government support. 

Update (18 March 2009): a copy of the Bill is available here. It received its first reading today in the House of Commons and is scheduled for second reading on 26 June 2009.