The report called ‘Improving Corporate Governance and Shareholder Engagement” demonstrated that the UK Corporate Governance system and shareholder engagement was generally working well but also highlighted ways that the overall quality of collective engagement could be enhanced. 

Among other things, the report recommended that: 

• The current ABI meetings with companies to discuss the principles of good corporate governance and to facilitate collective engagement should be extended to a wider pool of institutional investors rather than just to ABI members so that these can benefit from ABI’s expertise in this area. 
• An “Investor Exchange” mechanism should be established which would enable shareholders to raise concerns regarding UK listed companies with other shareholders through the ABI.

The ABI has stated that in terms of the ABI meetings, they are “extending this approach by inviting, as a matter of course, non-ABI members who are significant shareholders in the company to participate in ABI Collective Engagement”.  The ABI has also now established an Investor Exchange mechanism which “enables any shareholder proactively to raise a concern on a particular UK-listed company with other significant shareholders”.

Click here for more details on the ABI website.