June 2017

 


Pro Governance

Promoting Good Corporate Governance

    

Contact

 

 


 

Home

Blog


Boards

Bondholder Protection

Executive
Compensation


Merger Regulation

Pensions

Private Equity

Shareholder Activism

Shareholder Voting

Wider Share Ownership






 




 

 


 

 

Company Boards


At present, non-execs are selected by management itself and usually rubber-stamped at the shareholder meeting. So it should come as no surprise that in many instances board members feel more allegiance to the chief executive or chairman than to the interests of the shareholders.

We suggest that board members should act as paid consultants if management thinks that they can provide useful input in running their business.

The interests of the shareholders should be defended by a board or forum that is selected by the shareholders.

FOR TOPICAL COMMENTS GO TO OUR BLOG



 


 

About Pro Governance


Our Mission is to campaign for the protection of investors and savers by promoting good corporate governance.

We also believe that the wider spread of share ownership is in itself a public good and may sometimes even be preferable to higher economic efficiency.

Shareholders in publicly listed companies are widely dispersed and cannot micro-manage the affairs of the companies they are invested in. The international nature of today's shareholder registers make this also impossible for large institutional investors.

On the other hand, abuses that have developed over the past few years make it imperative that company managements are supervised in a more efficient way.

Tax incentives and institutional constraints have favoured the growth of large institutional investors at the expense of small individual shareholders. This makes it more important than ever that these investors behave like fiduciaries and have the interests of their clients at heart.

This means that the business of money management cannot be treated like any other profit-maximising business. Like the medical, legal or academic professions the interest of the clients has to have priority when critical decisions have to be made with regard to companies the money managers are invested in.

We at Pro-Gov think that the establishment of an effective international forum combining representatives from the national organisations of individual shareholders and investors will be an effective step in the direction of improving corporate governance.

At the moment the corporate Governance discussion is limited to academics, journalists in the quality business press, institutional shareholders and companies and their business associations as well as politicians. The one party missing on the table are the real investors who - with some exceptions - voiceless in the debate.

"The scandal isn't what's illegal; it's what's legal"
(Michael Kinsley)

 

 

 



 

 

   
Copyright Pro-Gov 2016 - All rights reserved