Editorial

Citation

Dobson, A. and Gale, C. (2015), "Editorial", International Journal of Law and Management, Vol. 57 No. 4. https://doi.org/10.1108/IJLMA-05-2015-0027

Editorial

Article Type: Editorial From: International Journal of Law and Management, Volume 57, Issue 4

In his thought-provoking conceptual paper, Crispas Nyombi critiques shareholder primacy under UK takeover law, together with the continued imposition of the Board Neutrality Rule. He explores the protection available to shareholders under the Takeover Code 2006 and the Companies Act 2006 and goes on to consider the tensions that can arise when the powers given to the shareholders are in conflict with both the Board and other stakeholders within the company. Nyombi goes on to question whether shareholder primacy could be problematic when set against the need to make decisions in light of the strategic direction of the company.

Dimitrios Chatzoudes explores the relationship between consumer perceptions of large companies and the role of the corporate social responsibility policies and how they impact the decision making of consumers. The paper, Investigating the impact of Corporate Social Responsibility (CSR) Policies, includes the results of an empirical study in which a sample of Greek consumers were asked to comment on the effects of CSR on behavioural intention. Given the relatively poor perceptions of Greek companies by consumers, the results are important. They point to the need for businesses to demonstrate both a genuine interest in the community and a concern for the workforce, as well as making a contribution to the economic prosperity of the country.

In his paper, The Portuguese Corporate Tax Reform and International Trends: An Assessment, Antonio Martins considers whether the changes implemented in Portugal in 2014 have brought the country more in line with international trends. Using a mix of legal research and case analysis, Martins charts the reforms which include, rate reductions and a participation exemption regime, together with a more flexible rule on cost acceptance across a broad range of initiatives. As Martins points out, the reforms which had political support have assisted the country as it moved away from economic crisis.

In Executive Remuneration: Regulatory Reforms in UK Company Law, Philip Wells presents a discussion of the attempts by the UK government to introduce more proactive and prophylactic measures to avoid the kinds of risk taking that resulted in such catastrophic results in the financial sector. Wells pays particular attention to the way that the current advisory vote on executive remuneration within public companies might be changed to provide a legally binding mechanism. He raises important questions too about shareholder involvement and the way in which shareholders can help shape both the direction of executive remuneration and also the direction of the company more generally.

In the final paper in this edition, Remuneration Consultants Advice and its Effect on Pay, Ernistine Ndzi explores the nature of advice that the remuneration consultants offer to the companies on executive pay. Against an increasingly complex backdrop, it is the consultant’s advice which is relied upon by listed companies in the UK and the USA, and the findings of this research paper suggest that such advice is not always objective. Although consultants are expected to bring a greater degree of transparency to the process, the paper challenges this orthodoxy and presents a picture of a more subjective approach that appears unrelated to performance.

Alexandra Dobson and Christopher Gale