Surveys

Financial reporting and auditing - what do investors want

We are well aware that historically there has been a disconnect between investors and the audited published financial information that is prepared for investors’ benefits. This is particularly apparent when things go wrong. However, the solution is to make sure that there is ongoing dialogue and communication, even when there is no crisis. I speak with some trepidation here because I do not think we are yet in the midst of a crisis, but I would be prepared to be informed otherwise and it might even be upon us before we leave! We should be talking so that we are ready for when there is a crisis.

ICGN study of share lending vis-à-vis voting

In January 2004, the International Corporate Governance Network circulated amongst its members a survey of securities holders’ lending practices. The questions contained in the survey focused on the impact of share lending on voting and other indicia of shareholder ownership and participation. The recipients of the survey were pension funds, mutual funds, investment trusts, insurance companies and other asset managers. In total, 39 member institutions responded to the survey, 31 of which currently lend (or have lent shares) in their portfolio. The list of survey respondents can be found in the Appendix to this report.

Cross Border Proxy Voting

An international study conducted by Institutional Design shows how cross border proxy voting works in practice today. The study audits the transmission of proxy materials and voting instructions between five issuers (one each from the US, UK, Germany, Japan and Italy) and six investment managers (three from the UK and three from the US). Commissioned by the International Corporate Governance Network, the first phase of the audit was conducted during the 2002 proxy voting season, the key findings from which are presented below.

view report