Wells Fargo’s Stumpf resigns as shareholders re-state demand for reforms

John Stumpf, the chairman and chief Executive (CEO) of  troubled US bank Wells Fargo, has quit following admissions of fraudulent activities, including the opening of customer accounts without permission. Stumpf’s replacement as CEO is Tim Sloan, the company’s president and chief operating officer.… Read the rest

UK lays out post-Brexit #corpgov strategy

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 It is important for the UK to continue to retain its reputation across the globe for the trustworthiness of corporate reports and for audit quality which attracts investment, Sir Win Bischoff, the Financial Reporting Council’s (FRC) chairman said at the recent Financial Services Brexit Summit.… Read the rest

Canada launches major governance overhaul

Canada has introduced a bill aimed at improving its corporate governance framework. An Act to amend the Canada Business Corporations Act (CBCA), the Canada Cooperatives Act, the Canada Not-for-profit Corporations Act and the Competition Act includes proposals to increase shareholder democracy and participation, support the push to increase women’s board participation, improve corporate transparency and business certainty.… Read the rest

Governance Fact Check: Chairman Independence

The UK Governance Code 2016 & Chairmen

fact-check-logoIn its 2016 AGM results announcement, Sky plc suggested that shareholders voted against James Murdoch because of proxy analysts rather than facts surrounding Murdoch’s appointment.

As a UK incorporated Plc, Sky’s governance arrangements fall under the remit of the UK Governance Code which is maintained by the Financial Reporting Council, the UK’s independent regulator for corporate reporting and governance.… Read the rest

Speaking out against #corpgov censorship

As the US Presidential battle careers towards its conclusion, the day to day business of law creation proceeds in Washington DC. Of particular interest to investors, indeed anyone with an interest in good governance, is HR5311 the ‘‘Corporate Governance Reform and Transparency Act of 2016.’’

The brainchild of the US Chamber of Commerce’s Center for Capital Markets Competitiveness, former SEC Commissioner Daniel Gallagher (now working for a Washington lobby firm Patomak Global), Congressman Jeb Hensarling and Representative Sean DuffyH.R.… Read the rest

Theresa May outlines far-reaching governance reforms

UK Prime Minister Theresa May has committed her government to tackling what she sees as corporate irresponsibility by a small number of companies and to improving board diversity by including workers and consumers.

Speaking at the Conservative Party Conference May emphasised the role of citizenship that companies should also embrace, “That means a commitment to the men and women who live around you, who work for you, who buy the goods and services you sell.  … Read the rest

EU needs to be more joined-up on corporate governance to make the Capital Markets Union work CFA Institute says

EU capital market union is being hampered by a  silo-ed approach to corporate governance policy, according to a report, Governance Policy in the European Union: Through an Investor’s Lens, published by the CFA Institute.

The report, the result of engagement with more than 30 investment practitioners, governance experts, and other stakeholders from across Europe, suggests that a joined-up approach to governance policy, encompassing the Capital Markets Union initiative, is now necessary to achieve meaningful reforms.… Read the rest

Emerging markets governance – IOSCO seeks to strengthen standards

Governance standards in emerging markets are coming under closer scrutiny. The International Organization of Securities Commissions’ (IOSCO) has published a report seeking to strengthen corporate governance frameworks within emerging markets.

The report from IOSCO’s growth and emerging markets committee identifies possible measures and regulatory approaches aimed at strengthening corporate governance in emerging market jurisdictions and aligning regulatory frameworks with internationally recognised standards.… Read the rest

Indian PE side agreements draw ire from SEBI

Following revelations that shareholders in Indian companies were being disadvantaged by private equity promoters SEBI, India’s Securities and Exchange Board is looking to cut down on unfair practices.

In a consultation to change to its Listing Rules SEBI said that it had been found that certain private equity firms had entered into side agreements with top personnel and key managerial personnel of a listed companies.… Read the rest

How should annual reports be reviewed? FRC consults on new procedures

The UK’s Financial Reporting Council (FRC) is consulting on its conduct committee’s operating procedures for reviewing company reports and accounts.

The conduct committee is a committee of the FRC Board established under the Articles of Association. The committee has a statutory duty to carry out reviews of the company reports and accounts to ensure they are meeting financial and accounting rules – including Financial Conduct Authority rules – and to respond to complaints about them.… Read the rest