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GOVERNMENT'S SHAREHOLDER INTERESTS NOW TO BE MANAGED BY THE SHAREHOLDER EXECUTIVE

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The government's team, created to advise departments in their roles ...
The government's team, created to advise departments in their roles

as key stakeholders in major companies, will now have direct

responsibility for these shareholder interests, the Cabinet Office

announced today.

As a result, the Shareholder Executive will take on the government's

interests in Royal Mail, BNFL, UKAEA, Royal Mint, Partnerships UK and

Actis.

The Shareholder Executive will now lead the government's day-to-day

relationships with certain government-owned companies and advise

Ministers on the shareholder issues including objectives,

governance, appointments, remuneration, strategy and performance

monitoring of these companies.

As a consequence, the Shareholder Executive will join the DTI and

incorporate existing expertise in DTI's shareholding teams. The

Shareholder Executive will continue to report to the cabinet

secretary for the overall success of its mission.

Currently, there are nine government departments that have

responsibility for more than 20 government-owned businesses.

The Shareholder Executive will continue to work with government

departments to strengthen their skills and experience as owners of

shareholdings in a range of public and private sector companies, as

well as some commercial trading funds.

The Executive will also become the government's centre for corporate

finance and governance, advising departments on shareholder-related

management, corporate governance and finance issues as well as wider

corporate finance and other industrial issues.

Cabinet secretary Andrew Turnbull said:

'These changes represent part of the current programme of civil

service reform. They will create a strong and highly experienced

professional group that has a strong mix of commercial, financial and

civil service skills and which will now take the lead on managing a

material part of the government's portfolio of shareholdings.

'The government created the Shareholder Executive to bring together

departmental and external expertise to strengthen the position of

departments as stakeholders in major companies. This has been

achieved during a short period of time and will continue to develop

through the enhancement of the Shareholder Executive's role.'

Permanent secretary of the DTI, Robin Young, said:

'By bringing together in the department a powerful mix of commercial,

financial and civil service skills and streamlining the number of

parties within government taking an active interest in these

businesses, we present a more coherent front to the companies

concerned. It will help to put DTI at the forefront of the

professionalisation agenda across the civil service.'

Also announced today, are the appointments to the Shareholder

Executive as directors of Stephen Lovegrove, former head of European

Media at Deutsche Bank investment banking, and Mark Turner, director,

Corporate Development at Rexam PLC.

Notes

* The Shareholder Executive was created within the Cabinet Office in

September 2003 under the leadership of Richard Gillingwater, a senior

investment banker from Credit Suisse First Boston. It comprises a

team of fifteen drawn from a mix of commercial, financial and Civil

Service backgrounds.

* The Shareholder Executive will take on the DTI's shareholder

interests in Royal Mail, BNFL and UKAEA, reporting to DTI ministers.

Similarly, they will take on from the Treasury and DFID shareholder

roles in respect of the Royal Mint, Partnerships UK and Actis,

reporting to Treasury and DFID Ministers.

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