The Association of British Insurers (ABI) has issued a report on improving corporate governance and shareholder engagement. The paper reviews the existing roles and responsibilities in corporate governance and shareholder engagement and makes recommendations on how these could be enhanced, with reference to the UK Corporate Governance Code.

According to the ABI, the report demonstrates that the UK Corporate Governance system and shareholder engagement are generally working well but ABI members believe that practices can be improved.

The report makes recommendations aimed at:

  • Improving corporate governance reporting;
  • Encouraging companies to review the time-commitment requirements of different non-executive roles and how different non-executive roles may best be structured;
  • Empowering non-executive directors, with measures to ensure they receive the right level of information to enhance their ability to support and challenge the Executive Directors;
  • Ensuring Non-Executive Directors receive early and full information on potential M&A transactions, including where appropriate independent advice;
  • Maintaining the UK’s leadership position in shareholder engagement, by opening ABI collective engagement to non-members and launching an Investor Exchange mechanism; and
  • Improving mutual understanding by encouraging companies to develop a transparent investor relations programme that includes the schedule of corporate governance-related meetings