Wednesday, November 14, 2012

Ways of exercising institutional investors’ influence


Institutional Investors

  • Institutional Investors manage funds invested by individuals. 
  • They are the biggest investors in many stock markets. 
  • They can wield great power over the companies in which they invest.
  • Examples are: Pension funds, insurance companies, investment and unit trusts.


Ways of exercising institutional investors’ influence:

  1. One-to-one meeting – discussion with chairman, directors or auditors.
  2. Voting – Propose resolutions in AGM or EGM, not to re-elect directors.
  3. Focus list – putting companies names on a list of underperforming companies 
  4. Contributing to corporate governance voting systems that measures the corporate governance performance indicators 
  5. Complain to regulators


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