Activist investors to push back against lax corporate governance

News Editor — Mon, 22 Mar 2010 14:18:13 +0000

Investor groups have launched a two-pronged battle this spring against the lax corporate governance that they say helped precipitate the financial crisis, reports The Washington Post.

E.U. and U.K.’s FSA Gives Rules to Activist Investors

News Editor — Wed, 19 Aug 2009 15:53:54 +0000

Investors can work toward ousting a CEO or change corporate strategy without violating European Union and U.K. regulations against market abust and acting in concern, reports The Financial Times. Any alliances between investors must be based on specific corporate issues, rather than a long-term agreement to vote together. Investors cannot trade on the information they acquire while working together, the Financial Services Authority noted. The FSA said it was spelling out what hedge funds and other activist investors can do because it strongly supported recent proposals from Sir David Walker to promote shareholder communication. The FSA wrote in a letter to the Institutional Shareholders Committee: “we do not believe that our regulatory requirements prevent collective engagement by institutional shareholders designed to raise legitimate concerns on particular corporate issues, events or matters of governance with the management of investee companies.”

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Activist investors to push back against lax corporate governance

E.U. and U.K.’s FSA Gives Rules to Activist Investors