Background to the consultation

The Stewardship Working Party has asked the Institute of Chartered Secretaries and Administrators (ICSA) to take forward two of the recommendations in its report:

  • Create a simple guide to good engagement practice, jointly developed by companies and institutional investors, with the particular aim of encouraging more productive meetings.
  • Help companies and institutional investors find more ways to seek feedback on the quality of meetings, and, over time, use this feedback to identify good stewardship and make improvements to practices.

The Institute has established a Steering Group to help carry out this work, chaired by Sir John Egan, former chair of Severn Trent plc and has issued a consultation document Improving Engagement Practices by Companies and Institutional Investors to which it is seeking responses by 30 November 2012.

General points about the stewardship consultation

We know from evidence that the engagement relationship between institutional investors and companies is not working at its best.

The consultation document has been prepared by both sides for their mutual benefit. Both stand to gain from the potential increase in long term value from successful engagement.

The objective of the consultation process is to facilitate an environment where companies and their investors can work together to achieve common aims over a longer time frame so companies are relieved of pressure to take short term measures at the expense of longer term benefits for the business.


The consultation process

Respondents are asked for their views on whether guidance will help improve engagement practices and to comment on a list of practical measures and ideas designed to make meetings more productive.

You can either attend a consultation meeting or send your response to ICSA. The consultation closes on the 30th November 2012.

Subject to the outcome of the consultation, the Steering Group intends to issue guidance in March 2013.

Read the full consultation

Find out more about our series of introductory webinars Webinar on 3rd June at 12:30pm, Responsible business: Beyond shareholder value

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