The Shareholder Executive is a body within the UK Government responsible for managing the government's financial interest in a range of state-owned businesses. It is part of the HM Treasury and is staffed by civil servants, many of whom are corporate finance professionals with private sector experience. Since February 2013, its Acting Chief Executive has been Mark Russell.
The Shareholder Executive currently manages a portfolio of businesses with a combined turnover of around £12 billion. The businesses are varied and can be in the form of a limited company, public limited company, limited liability partnership, statutory corporation, trading fund, executive agency, non-departmental public body or non-ministerial government department.
It advised the government on drafting parts of the Postal Services Act 2011 and worked on the privatisation of Royal Mail and the possible mutualisation of Post Office Ltd. It was also involved in establishing the UK Green Investment Bank, the Public Data Group and the British Business Bank.
It is not responsible for the government's shares in UK banks, which are managed by UK Financial Investments (UKFI), or the government's property holdings, which are managed by the Government Property Unit (GPU).
- 1 History
- 2 Portfolio Unit
- 3 Corporate Finance Practice
- 4 Former businesses
- 5 See also
- 6 References
- 7 External links
Following the abolition of the DTI in 2007 it moved to the Department for Business, Enterprise and Regulatory Reform (BERR) and then to its successor, the Department for Business, Innovation and Skills (BIS) in 2009.
The Shareholder Executive was originally involved in the government's nationalisation of Northern Rock and Bradford & Bingley at the start of the banking crisis in 2008. It then began the process of splitting off Northern Rock's 'bad bank' mortgage business to form Northern Rock (Asset Management). All bank shareholdings were transferred to UK Financial Investments in November 2008.
In 2011 the Government Property Unit was moved from the Shareholder Executive to the Cabinet Office.
The Portfolio Unit contains businesses where the Shareholder Executive has a shareholding mandate, although the shares themselves are owned by government departments. Its role is either accountable to ministers directly (‘executive’), working alongside shareholding teams within departments ('joint team') or advising department shareholder teams (‘advisory’). Most businesses are wholly owned by the government, but some are part owned.
- Companies House
- Insolvency Service
- Land Registry
- Met Office
- Ordnance Survey
- Post Office
- Royal Mail (30%)
- UK Export Finance
- UK Green Investment Bank
- Urenco (33.3%)
- Working Links (33.3%)
Corporate Finance Practice
The Corporate Finance Practice contains businesses where the Shareholder Executive has no clear shareholding mandate and its only role is to provide advice to the relevant government department.
- Public Sector Spectrum
- Bio Products Laboratory (20%)
- Community Health Partnerships
- NHS Professionals
- NHS Shared Business Services (50%)
- Defence Science and Technology Laboratory
- Defence Storage and Distribution Agency
- Defence Support Group
- Oil and Pipelines Agency
The Shareholder Executive has previously been responsible for a number of other businesses that have since either been sold, moved to other areas of government or dissolved.
- Actis - remaining stake sold in 2012
- Army Base Repair Organisation - merged into Defence Support Group in 2008
- Bradford & Bingley - moved to UKFI in 2008
- British Energy - remaining stake sold during takeover by EDF Energy in 2009
- British Nuclear Fuels - broken up and ceased activities in 2009
- British Waterways - removed from portfolio to become charitable trust in 2012
- Defence Aviation Repair Agency - merged into Defence Support Group in 2008
- Eurostar - sale transferred to the Shareholder Executive in October 2014. Share sold in 2015.
- Fire Service College - removed from portfolio in 2007
- Forensic Science Service - dissolved in 2012
- Covent Garden Market Authority - moved to Government Property Unit in 2011
- Northern Ireland Water removed from portfolio in 2010
- Northern Rock - moved to UKFI in 2008
- Northern Rock (Asset Management) moved to UKFI in 2008
- Qinetiq - remaining stake sold in 2008
- Queen Elizabeth II Conference Centre - moved to Government Property Unit in 2011
- Partnerships UK - dissolved in 2011
- Scottish Water - removed from portfolio in 2011
- The Tote - sold to Betfred in 2011
- UK Atomic Energy Authority - commercial business unit sold to Babcock International Group in 2009