C/L/272. How far are the goals of the Act regarding the "light touch" of the regulatory burden and for "shareholder engagement" and also of "encouraging a long term investment culture in the UK" to be achieved by the Act?

The paper examines the company law within English legal system comparing Companies Acts (CA) of 1985, 2004 and 2006. The rights of the shareholders and the enforcement of these rights against directors are discussed; the problems in company law prior to the CA 2006 are addressed, particularly, the issue that shareholders could not enforce a fiduciary duty on directors in respect to their holdings. It is explained how CA 2006 has resolved this issue for shareholders encouraging long term investment in the UK.