The debate on proportionality concerns ways in which ownership and control may diverge. Companies may wish to promote long-term stability by tilting voting rights in favour of block-holders whilst the growing use of measures, like stock lending, separate votes from ownership in the short term which can have real impact for companies.

The ICGN dinner debate provided an opportunity to have an informed and balanced dialogue with two leading European institutional investors, Jacob Wallenberg, Chairman of the Board of Investor AB, Sweden and Jean-Pierre Hellebuyck, Vice President Axa, France. Mark Anson, CEO Hermes and ICGN Chairman, chaired the debate. Over dinner, Professor Henry Hu, Allan Shivers Chair in the Law of Banking and Finance, University of Texas Law School and co-author of the groundbreaking paper on “empty votes” and empty votes, hedge funds and their consequences, gave an insight into new research on the separation between ownership and control. This was followed by a continuation of the discussion under the Chatham House Rule amongst the dinner guests, moderated by Anne Simpson, ICGN Executive Director.

The meeting was one of a series of mid-year meetings organised by the ICGN where topics of importance, relevance and topicality are aired and debated by interested parties: shareholders, company directors, regulators, market participants and other stakeholders. Other ICGN mid-year events have been held in Delaware, Frankfurt and Mumbai.