Corporate weekly highlights—1 February 2018

Corporate weekly highlights—1 February 2018

This week’s edition of Corporate highlights includes the Pension and Lifetime Savings Association’s updated edition of the Corporate Governance Policy and Voting Guidelines and its AGM Voting Review, and the setting up of a new industry group to develop corporate governance principles for large private companies.

Corporate governance

Pensions and Lifetime Savings Association releases corporate governance policy and voting guidelines

The Pensions and Lifetime Savings Association (PLSA) has published its corporate governance policy and voting guidelines 2018. The guidelines provide its members with examples of good stewardship practice and recommendations for key votes at the annual general meetings of their investee companies, on subjects such as executive pay, the re-election of directors and the approval of the annual report. This year's guidelines continue to relate to the current application of the UK Corporate Governance Code, rather than the reforms proposed by the Financial Reporting Council (FRC) in December 2017.

The 2018 Guidelines include an additional section on sustainability which recommends that, where shareholder attempts have failed to encourage companies in relevant sectors to provide a detailed risk assessment and response to the effect of climate change on their business, they should not support the re-election of the chair. This additional section follows on from work that the PLSA did in 2017, when it produced guidance for pension funds on the economic implications for climate change. The paper recommended that pension funds question their asset managers on how they are engaging with investee companies over the impact of climate change, including their use of votes at company AGMs.

For further information, see: LNB News 26/01/2018 89.

Pension and Lifetime Savings Association releases AGM voting review

The PLSA has also published its AGM voting review which examines AGM results for the FTSE All Share Index in 2017. The report examines the results and causes of shareholder dissent for FTSE 350 companies during 2017. The PLSA is concerned with the strategy, governance and culture of these companies, and

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