Regulating Corporate Power and Company Law in United Kingdom Essay

Regulating Corporate Power and Company Law in United Kingdom - Essay Example Pirg, 2007)1. Though this can be seen as a positive development by Congress, in favour of public interest, a lot more needs to be done in protecting the public. There is a lot to be desired, but governments around the world face stiff legislative moves by an entity, that seeks to make the most of their interest at the interest of the public- the corporate. On 3 October 2002, the contract of the British Railway with Railtrack came to an end, which initiated the government to establish Network Rail as the new contractor, provided Network Rail guaranteed that it would reinvest the profits into further railway infrastructure development in the pursuit of a safer and more reliable railway system. On closer observation, it is clear that these guarantees raise serious concerns in respect of the accountability of Network Rail; firstly, as its status as a private sector organisation, and secondly, its implications for the Treasury and the tax payer. This view could have been avoided had the Government adopted an alternative approach, commonly referred to as a 'government sponsored enterprise'. This would have given the government more authority in handling such a vital transport system in the country. This was not to be, and the government again goofed up an opportunity to gain increased control of the railway infrastructure at a significantly reduced price. The corporate was successful in twisting the government arm to its benefit (Lisa Whitehouse, 2003)2. Large, transnational corporations (TNC) are becoming increasingly powerful. Additional problems result from a variety of social injustice and human rights violations. This is not to say that corporates are a bane to society, but the muscle power of corporates to dictate and run policies in their favour is most disturbing. Profits are the driving factor, and not workers satisfaction. Corporates work tirelessly to improve their market presence and in the bargain, has no time or inclination to focus on the treatment vetted to their co-workers, or how society and the environment are affected. Sometimes, the role of these multinational giants can be seen in the backdrop of deliberate abdication of social clauses and regulations to maximise their profits. These companies manipulate international trade pacts and agreements, in order to maximise profits, such as cheap labour, government incentives and subsidies, tax rebates and so on (Anup Shah, 2002)3. Tax avoidance adds to the woes of the general public. Suppressing the formation of workers union to fight for their co-workers justice, these corporates run the show to their advantage at all levels. The future for the workers looks