Formed May 2003 (2003-05) Number of employees 130 | Founded 2003 | |
Dissolved 1 April 2016 (2016-04-01) Superseding agency UK Government Investments Minister responsible Rt Hon. Sajid Javid MP, Secretary of State for Business, Innovation and Skills Deputy Minister responsible Rt Hon. Anna Soubry MP, Minister of State for Small Business, Industry and Enterprise Agency executives Robert Swannell, Chairman
Mark Russell, Chief Executive Parent department Department for Business, Innovation and Skills | ||
The Shareholder Executive (ShEx) was a body within the UK Government responsible for managing the government's financial interest in a range of state-owned businesses for commercial rather than political interests. It was part of the Department for Business, Innovation and Skills and staffed by civil servants, many of whom were corporate finance professionals with private sector experience. It was led by Mark Russell as Chief Executive at the time of its closure.
Contents
- Role
- History
- Portfolio Unit
- Department for Business Energy and Industrial Strategy
- Department for Culture Media and Sport
- Department for International Development
- Department for Transport
- Department for Work and Pensions
- Department of Energy and Climate Change
- HM Treasury
- Ministry of Defence
- Corporate Finance Practice
- Department for Business Innovation and Skills
- Department of Health
- Former businesses
- References
Role
The Shareholder Executive managed a portfolio of businesses with a combined turnover of around £12 billion. The businesses varied and could 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 was not responsible for the government's shares in UK banks, which were managed by UK Financial Investments (UKFI), or the government's property holdings, which were managed by the Government Property Unit (GPU).
History
The Shareholder Executive was originally established in September 2003 as part of the Cabinet Office. In 2004 it moved to the Department of Trade and Industry (DTI).
In 2007 the National Audit Office published a report into the Shareholder Executive. This was broadly positive but had some misgivings about its location in the DTI.
Following the split of the DTI in 2007, ShEX 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 as part of the new Efficiency and Reform Group.
In 2015, the government announced that the Shareholder Executive would be transferred to HM Treasury and became subsidiary of UK Government Investments, along with UK Financial Investments. This was due to occur with the end of the government fiscal year on 1 April 2016.
Portfolio Unit
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.
Department for Business, Energy and Industrial Strategy
Department for Culture, Media and Sport
Department for International Development
Department for Transport
Department for Work and Pensions
Department of Energy and Climate Change
HM Treasury
Ministry of Defence
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.
Department for Business, Innovation and Skills
Department for Culture, Media and Sport
Department of Health
Ministry of Defence
Former businesses
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.