Stephen Haddrill, Chief Executive of the Financial Reporting Council (FRC), has urged investors to use their shareholder rights to improve the health of corporate governance and called for a step change in the quality of engagement between shareholders and the businesses they own.
Speaking at the Yale School of Management at the 5th Annual Yale Governance Forum, Mr Haddrill said he hoped that investors based outside the UK would wish to take up the principles to be outlined in a new Stewardship Code for investors to be published by the FRC within the next month.
The Code will operate on a ‘comply or explain’ basis for UK fund managers who will be expected to comply with the code or explain their reasons for not doing so.
For more details see the FRC website