Directors' duties and shareholder circulars - and why (a little) legalese may be no bad thing

There was no shortage of grievances to discuss when HBOS shareholders met in December to consider the takeover of their bank by Lloyds TSB. Among their lesser complaints, after the destruction of shareholder value, were the size and incomprehensibility of the documentation they had received. It consisted of "verbiage", "jargon" and "guff"; even the chairman conceded that wading through it was a "nightmare".

Whither the virtues of concision and clarity? Specifically, does formulaic legal language – so-called boilerplate or legalese – have any place in a letter to shareholders? Read Wragge & Co's analysis and action points for more on the debate.