The UK is about to stop shareholders monopolising votes for company boards, with worker voice. Asset managers control most shareholder votes in public companies through ‘other people’s money’. They have systemic conflicts of interest, because shareholder votes may influence companies to buy asset managers’ financial products (eg pension schemes). This enables mass self-dealing.
Action Plan: European company law and corporate governance – 12.12.2012 | Consultation on the future of European Company Law – 20.02.2012 | Conference on “European Company Law: the way forward” – 16–17.05.2011
Last week the European Commission published its long-awaited Action Plan on European Company Law and Corporate Governance. [1] Given the direction the political winds are blowing these days in Brussels, the general thrust of the Action Plan should not be a surprise. Nevertheless, those hoping for a departure from the ‘shareholder value’ philosophy which has dominating the Commission’s approach the past decade can’t help but be disappointed. (By Sigurt Vitols)