PMQT Written Answers – 7 June 1995

Below is the text of the written answers relating to Prime Minister’s Question Time from 7th June 1995.

PRIME MINISTER:

Annual General Meetings

Dr. Spink: To ask the Prime Minister what action he plans to take to prevent pay resolutions submitted by shareholders at company annual general meetings being treated at votes of confidence in the board of directors.

The Prime Minister: It is for the board to decide how it wishes to respond to any resolution which is submitted by shareholders to the company’s annual general meeting. It is not for Government to determine the stance which either the directors or shareholders should adopt.

Executive Pay

Dr. Spink: To ask the Prime Minister what action he plans to take to empower and encourage institutional shareholders to control directors’ pay, and particularly in respect of the utilities.

The Prime Minister: The Government believe that institutional investors should take an active interest in the management of companies in which they invest, including matters such as executive remuneration. The terms of reference of the Greenbury committee, which is examining the structure within which executive pay is determined and disclosed, include consideration of the role of shareholders. I look forward to seeing the committee’s recommendations.

Lowe Bell Communications

Mr. Gordon Prentice: To ask the Prime Minister what contracts have been awarded to Lowe Bell Communications since D-Day PR contract in 1994.

The Prime Minister: Lowe Bell Communications has been awarded no further contracts relating to the World War Two commemorations since the D-Day contract. As for other contracts, this information is not held centrally and could be obtained only at disproportionate cost.