Engagement with shareholders
Engagement with shareholders

The following Corporate practice note provides comprehensive and up to date legal information covering:

  • Engagement with shareholders
  • The UK Corporate Governance Code
  • Chartered Governance Institute Guidance on Enhancing Stewardship Dialogue
  • Chartered Governance Institute and IA guidance on the stakeholder voice in board decision making
  • IA Principles of Remuneration
  • Role of the chair in shareholder relations
  • The senior independent director
  • Non-executive directors
  • Developing an engagement strategy
  • Selective disclosure
  • More...

Coronavirus (COVID-19): This Practice Notice contains guidance that may be affected by the coronavirus (COVID-19) outbreak, specifically in relation to the holding of AGMs and other general meetings. For further details on its impact, see Practice Note: Coronavirus (COVID-19)—holding general meetings and AGMs.

This Practice Note considers the best practice guidance on relations between listed companies and their shareholders. It includes coverage and interpretation of the UK Corporate Governance Code (UKCG Code), as maintained by the Financial Reporting Council (FRC), as well as:

  1. the FRC's Stewardship Code

  2. the FRC's 2018 Guidance on Board Effectiveness

  3. the Guidance on enhancing stewardship dialogue issued by the Chartered Governance Institute (previously known as ICSA: The Governance Institute) (CGI)

  4. the Stewardship Guide and Voting Guidelines 2020 published by the Pensions and Lifetime Savings Association (PLSA)

  5. the UK Shareowner Voting Guidelines (available from the PIRC website) (PIRC Guidelines) issued by Pensions Investment Research Consultants Ltd (PIRC)

  6. the 2021 Proxy Paper Guidelines published by Glass Lewis

This Practice Note also explores the specific role to be played in shareholder relations by each of the chair, the senior independent director (SID) and the non-executive directors (NEDs). It also considers guidance on the conduct of general meetings (including the AGM), electronic communications and the annual report.

The UK Corporate Governance Code

The UKCG Code, which is issued and administered by the FRC, is the benchmark for good

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