ABSTRACT
The first emphasises public policy regimes, most notably in terms of anti-competition policy and extensive government intervention in both the macro and micro level. This chapter addresses such issues by an examination of the interplay between public policy regimes and 'City'-industry relations in the first Wilson Government. It assesses the attempts made by that Government to influence both the internal and external mechanisms of corporate governance. The chapter assess the take-over initiatives in terms of Government/City relations and the long-run effects of Government intervention on the subsequent behaviour of institutional shareholders and hence the evolution of corporate governance in the UK. Then the chapter assesses the policy options available to Government and identifies the key problem as that of reforming corporate governance without alienating the financial markets.
