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ABI publishes blueprint on corporate governance and shareholder engagement

The ABI has today published a report on 'Improving Corporate Governance and Shareholder Engagement'.

The report considers critically the different roles and responsibilities of all the principal elements within governance – or stewardship – including:

  • non-executives’ ability to provide constructive challenge
  • the variety of approaches institutional investors take in holding companies to account
  • the relationship between, and different responsibilities of, asset managers and asset owners

Following extensive consultation, the report also provides a comprehensive review of major institutional investors’ current approaches to corporate governance analysis and engagement and makes a number of proposals that will ensure the UK remains a global leader in shareholder engagement.

Andrew Ninian, Head of Corporate Governance, ABI, comments:

"Good corporate governance enhances and underpins a company’s long-term performance and is critical to long-term value creation and economic growth. This report demonstrates that the UK Corporate Governance system and shareholder engagement are generally working well.

"However, ABI members believe that practices can be improved; in particular, we focus on measures to help non-executives to have appropriate time, information and structures to fulfil their role of providing constructive challenge. Good shareholder engagement is also critical. Companies have the right to expect this and so we are looking to enhance what the ABI does with some important new initiatives.

"The ABI already facilitates an extensive programme of collective engagement. Given the success of this, we will be opening it up to non-ABI members and will set-up a formal Investor Exchange mechanism, so any significant shareholders can raise concerns via the ABI.”

Find out more on the ABI shareholder engagement page

Download a copy of the report: Improving Corporate Governance and Shareholder Engagement (pdf 270kB)

Last updated 01/07/2016