Does the board of a VCT have a role? Richard Hargreaves, chief executive of Classic Fund Management, investigates
A venture capital trust (VCT) is a public company and, like all public companies, is governed by stock exchange and corporate governance rules. VCTs are similar to investment trusts in many respects and, just like them, usually have a separate manager responsible for making and monitoring investments. Stock exchange rules also require a VCT to have a board with a majority of directors who are independent of that manager, as with any investment trust. In the City's good old days, this was not the case and investment houses used to stuff investment trust boards with 'friends' to reduce the ...
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