Differential ownership rights
‘These guidance statements outline the importance of investors making effective use of voting rights at shareholder meetings, and to engage intelligently and pro-actively with investee companies on strategy, corporate governance and both financial and non-financial risks related to long-term performance. This in recognition of the fact that both companies and shareholders have a mutual interest in protecting and generating sustainable corporate value over the long term.’
Has the time of ‘behavioural governance’ come?
‘It’s important to stress that the factors described affect all participants in the corporate governance eco-system – regulators, academics and commentators are not exempt from bounded rationality, satisficing behaviour, heuristics, politics, making ethical judgements or the framing of issues in terms of the cultures into which they are entered. To enhance corporate governance beyond compliance a behavioural approach will be required from all.’