On 25 July 2013, the Association of British Insurers (‘ABI’) published a report on ‘Improving Corporate Governance and Shareholder Engagement’. The report:

  • considers the different roles and responsibilities of non-executive directors and  institutional shareholders, as well as of asset managers and asset owners;
  • provides a comprehensive review of the current approach taken by the major institutional investors to corporate governance analysis and engagement; and
  • makes a number of proposals for improving corporate governance and shareholder engagement.  

Its proposals include the following:

  • non-executive directors: the company should ensure that its non-executive directors  receive adequate  information to help them support and challenge their executive board colleagues, together with full and early information on potential mergers and acquisitions (including independent advice, if appropriate); and
  • investors: companies should be encouraged to set up a transparent investor relations programme, to include meetings on corporate governance issues.

ABI Report: Improving corporate governance and shareholder engagement available at:

https://www.abi.org.uk/News/News-updates/2013/07/~/media/2 492136445D547CD88F369756481E14A.ashx