UK companies should be disclosing investor engagement levels according to a new report from think-tank and corporate governance body Tomorrow’s Company, reveals company secretarial services firm London Registrars (http://www.london-registrars.co.uk/). Publically ranking investor levels of engagement would, according to the report, “improve stewardship”.
The recently published report ‘Tomorrow’s Stewardship’ from the corporate governance body looked into companies’ investor stewardship, aiming to explain why stewardship is important to UK firms. The report includes examples of effective stewardship and outlines an agenda for companies wishing to improve their levels of engagement. This agenda looks at requisite changes for every link of the investment chain, from the beneficial holder to the company’s board of directors, in order to improve engagement. It is recommended that every one of these ‘links’ takes responsibility for their part in engagement improvements, encouraging transparency at all times.
As company compliance advisors, London Registrars was interested to note the advice laid out in the report for companies and their boards of directors. In order to improve levels of engagement, the board should define its mandate; the company should seek to build relationships with stewardship investors; and it should publicly rank shareholders according to quality of stewardship. Also of interest to companies is the recommendation that pension fund trustees understand the importance of stewardship and issue mandates on stewardship as a result.
To read the Tomorrow’s Company report in full, visit the website athttp://www.tomorrowscompany.com/. To find out more about London Registrars’ company secretarial services and other offerings, go to http://www.london-registrars.co.uk/.