What is one of the responsibilities of the Takeover Panel?

One of the key responsibilities of the Takeover Panel is to draft and maintain the City Code, which governs the conduct of takeovers and mergers in the UK. The City Code is designed to protect the interests of shareholders and ensure that the takeover process is conducted fairly and transparently. It establishes rules regarding disclosure, timing, and the treatment of stakeholders involved in the takeover process. This helps promote integrity within the financial markets and fosters trust among investors, which is vital for the smooth operation of capital markets.

In contrast, the other options do not align with the core functions of the Takeover Panel. Reducing corporate taxes is outside its mandate, as tax policy falls under the jurisdiction of governmental financial authorities. Ensuring equal voting rights for shareholders is more a principle of corporate governance than a specific responsibility of the Takeover Panel. Investigating fraudulent activity in mergers may involve other regulatory bodies or legal authorities, but it is not a primary duty of the Takeover Panel itself. Thus, the primary focus of the Takeover Panel is its role in drafting and overseeing adherence to the City Code.