Paul Myners, chairman of Marks & Spencer, will chair the study, supported by an Advisory Group drawn from representatives from high tech sectors, private equity companies and City investment institutions.
Science and Innovation Minister Lord Sainsbury said:
"This is an extremely important issue, and I am delighted that Paul Myners has agreed to chair this study to see if there is a way forward which meets the needs and concerns of all the parties involved."
The study follows representations from the biotechnology industry that current application of pre-emption rights in the UK makes it difficult, and more expensive, for companies to finance research and product development. The industry argues that this is not in the interests of the shareholders of these companies. Current application largely follows the pre-emption guidelines issued by institutional investors, but the rights themselves are enshrined in law.
The conclusions will help to inform the Government's thinking in advance of a planned review by the European Commission of the EU Second Company Law Directive. Current Companies Act provisions on pre-emption implement the requirements of the Directive.
The aim is to produce and publish a final report early in the New Year.
