OECD updates governance assessment methodology

OECD Corporate Governance Principles

The OECD has published its revised Methodology for Assessing the Implementation of the G20/OECD Principles of Corporate Governance. The latest version incorporates changes that were made to the Principles during the 2015 review as well as a number of additional clarifications.… Read the rest

EU Shareholder Rights Directive II moves closer to adoption

EU Shareholder Rights Directi e

The revised EU’s Shareholder Rights Directive was approved by the European Parliament (EP) earlier this week and will be formally adopted by the European Council, made up of the member states, shortly. Once adopted member states have two years to put the directive into effect in their own countries.… Read the rest

US Business Roundtable supports Dodd Frank reform

Business Roundtable | BRT

The Business Roundtable (BRT), an association of the top US chief executives, has voiced its support for President Trump’s plans to reform Dodd Frank and has outlined a number of corporate governance regulations that it believes need reform or to be repealed.… Read the rest

FSB assesses post-financial crisis reform and climate-related disclosure progress

Financial Stability Board crisis reforms Climate-related Financial Disclosures

The Financial Stability Board (FSB) backed by the G-20, assessed reforms introduced following the financial crisis of 2008, its work on financial technology, financial sector misconduct and climate-related financial disclosures in a meeting held at the end of February.

The FSB promotes global financial stability by coordinating the development of regulatory, supervisory and other financial sector policies and conducting outreach to non-member countries. … Read the rest

Purposeful Company Task Force: Corporate governance reform could boost UK economy

Purposeful Company Task force

The UK’s Purposeful Company Task force, set up by the Big Innovation Centre, has called for major changes in corporate governance, asset management and backed the Financial Reporting Council’s proposal for company’s to report on how directors are having regard to stakeholders as required under company law.… Read the rest

Countries should follow France’s lead on corporate accountability

The European Coalition for Corporate Justice (ECCJ), along with the French corporate accountability platform, Forum Citoyen pour la RSE, has called for European countries, EU institutions and the wider international community to follow the lead of France which has established  a duty of vigilance obligation for parent and subcontracting companies.… Read the rest

S&P 100 companies increase disclosure on investor engagement

Nearly half of S&P 100 companies included information in 2016 that showed how they responded to shareholder concerns and made changes to policies, according to a new report from US corporate adviser, Equilar.

 

In 2016 42% of S&P 100 companies included disclosures in their proxy statements on how they modified their practices after engaging with shareholders compared to just 14% in 2012.… Read the rest

UK’s FRC asks for more governance powers

Stephen Haddrill

The UK’s Financial Reporting Council (FRC) has argued that it needs more powers to take enforcement action against directors so that it can investigate and prosecute all directors for financial reporting breaches and associated issues of integrity, rather than only accountants and actuaries as at present in its response to the government’s green paper on corporate governance.… Read the rest

Italian shareholder association formed to protect investors

Italian shareholder association formed

An Italian shareholder association has been formed to protect the group minority, with a particular focus on listed small and medium-sized enterprises (SMEs).

The Italian Association for the Exercise of Shareholders’ Rights, AIEDA, has been set up by a group of professionals, managers and entrepreneurs with the aim of promoting good corporate governance and facilitating dialogue between listed companies directors and minority shareholders as well as the exercise of their rights.… Read the rest

Comment: Proxy adviser mafia shakedown? Put up or shut up.

Competition and Markets Authority Logo

In a recent edition of The Times, Financial Editor Patrick Hosking wrote an item entitled “Adviser is accused of mafia‑style shakedown” in which the business community raised concerns about the potential conflicts of interest in the governance services industry. It explained how ISS, the largest proxy voting adviser had developed a service which helps companies draft governance and voting disclosures in a way which improves the chances they will get the nod from shareholders.… Read the rest