Jump to ContentJump to Main Navigation
Corporate Ownership and ControlBritish Business Transformed$
Users without a subscription are not able to see the full content.

Brian R. Cheffins

Print publication date: 2008

Print ISBN-13: 9780199236978

Published to Oxford Scholarship Online: January 2009

DOI: 10.1093/acprof:oso/9780199236978.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 28 November 2020

1940–1990: The Sell Side

1940–1990: The Sell Side

(p.301) NINE 1940–1990: The Sell Side
Corporate Ownership and Control

Brian R. Cheffins

Oxford University Press

Between 1940 and 1990, a separation of ownership and control became the norm in large business enterprises in Britain. This chapter discusses empirical evidence demonstrating the point and offers a case study of 30 large enterprises that were owner dominated as of 1951 that shows merger activity played an integral role in unwinding control in UK public companies. The chapter then explains from the perspective of the sell side why ownership split from control. Competitive pressures made exit more appealing as profits declined in the 1960s and 1970s and legal reforms deterred firms from seeking refuge through anti-competitive alliances. Dividend-unfriendly tax rules and high taxes on large incomes and rich estates further increased the pressure on blockholders. Company law reforms, revisions of stock exchange listing rules, and tighter regulation of takeover offers combined to diminish still further the private benefits of control and thereby enhanced incentives to exit.

Keywords:   share ownership data, mergers, shareholder voting, competition law, corporate tax, dividends, estate tax, company law, London Stock Exchange

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .