Related Research Articles
Corporate governance is the collection of mechanisms, processes and relations by which corporations are controlled and operated. Governance structures and principles identify the distribution of rights and responsibilities among different participants in the corporation and include the rules and procedures for making decisions in corporate affairs. Corporate governance is necessary because of the possibility of conflicts of interests between stakeholders, primarily between shareholders and upper management or among shareholders.
An activist shareholder is a shareholder that uses an equity stake in a corporation to put pressure on its management. A fairly small stake may be enough to launch a successful campaign. In comparison, a full takeover bid is a much more costly and difficult undertaking. The goals of activist shareholders range from financial to non-financial. Shareholder activists can address self-dealing by corporate insiders, although large stockholders can also engage in self-dealing to themselves at the expense of smaller minority shareholders.
An institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include banks, credit unions, insurance companies, pensions, hedge funds, REITs, investment advisors, endowments, and mutual funds. Operating companies which invest excess capital in these types of assets may also be included in the term. Activist institutional investors may also influence corporate governance by exercising voting rights in their investments.
BlackRock, Inc. is an American global investment management corporation based in New York City. Founded in 1988, initially as a risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager, with $7.4 trillion in assets under management as of end-Q4 2019. BlackRock operates globally with 70 offices in 30 countries and clients in 100 countries. Due to its power, and the sheer size and scope of its financial assets and activities, BlackRock has been called the world's largest shadow bank.
The KiwiSaver scheme, a New Zealand savings scheme, came into operation from Monday, 2 July 2007. Participants can normally access their KiwiSaver funds only after the age of 65, but can also use them as a deposit for a first home.
There are two basic financial market participant categories, Investor vs. Speculator and Institutional vs. Retail. Action in financial markets by central banks is usually regarded as intervention rather than participation.
Socially responsible investing (SRI), or social investment, also known as sustainable, socially conscious, "green" or ethical investing, is any investment strategy which seeks to consider both financial return and social/environmental good to bring about social change regarded as positive by proponents.
The Interfaith Center on Corporate Responsibility (ICCR) is an association advocating for corporate social responsibility. Its 300 member organizations comprise faith communities, asset managers, unions, pensions, NGOs and other investors. ICCR members engage hundreds of corporations annually in an effort to foster greater corporate accountability. ICCR's members file shareholder resolutions on issues such as climate change, human rights, corporate governance, financial practices, and other social and environmental concerns. The organization was founded in 1971.
Principles for Responsible Investment is a United Nations-supported international network of investors working together to implement its six aspirational principles, often referenced as "the Principles". Its goal is to understand the implications of sustainability for investors and support signatories to facilitate incorporating these issues into their investment decision-making and ownership practices. In implementing these principles, signatories contribute to the development of a more sustainable global financial system.
The Public Investment Corporation (PIC) is a South African state owned entity (SOC) with R2.083 trillion of assets under management as of 31 March 2018. It is Africa's largest asset manager. Established in 1911, it holds large stakes in several South African companies, and is one of the entities through which the government implements its policy of Broad-Based Black Economic Empowerment. The PIC is also responsible for investing the South African Government Employees Pension Fund (GEPF).
Impact investing refers to investments "made into companies, organizations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return". Impact investments provide capital to address social and/or environmental issues.
Amundi is a French asset management company. With 1,653 billion euros of assets under management (AUM) at the end of 2019, it is the largest asset manager in Europe and one of the 10 biggest investment managers by AUM in the world.
Environmental, Social, and Governance (ESG) refers to the three central factors in measuring the sustainability and societal impact of an investment in a company or business.
The Stewardship Code is a part of UK company law concerning principles that institutional investors are expected to follow. It was released in 2010 by the Financial Reporting Council, and is directed at asset managers who hold voting rights on shares in United Kingdom companies. Its principal aim is to make institutional investors, who manage "other people's money", be active and engage in corporate governance in the interests of their beneficiaries.
The Australian Shareholders’ Association (ASA) educates investors and stands up for shareholder rights.
Big Society Capital Limited (BSC) is an independent social investment institution in the United Kingdom, which provides finance to organizations that support front-line social sector entities to help them grow.
Shareholders in the United Kingdom are people and organisations who buy shares in UK companies. In large companies, such as those on the FTSE100, shareholders are overwhelmingly large institutional investors, such as pension funds, insurance companies, mutual funds or similar foreign organisations. UK shareholders have the most favourable set of rights in the world in their ability to control directors of corporations. UK company law gives shareholders the ability to,
ShareSoc is a campaigning organisation that represents and supports individual investors who invest in the UK stock markets. ShareSoc is a not for profit organisation with over 3,000 members, making it the UK's largest representative body for individual investors.
NN Investment Partners is a Netherlands-based asset manager, with headquarters in The Hague and offices in 15 countries in Europe, Asia and the Americas. The company is a wholly owned subsidiary of NN Group, the biggest Dutch life insurer. NN IP is an active manager for institutional and wholesale investors around the world. It manages €287 billion in assets for clients, integrating Environmental, social and corporate governance (ESG) criteria throughout the investment process for the majority of its strategies. NN IP is globally ranked as the 87th biggest asset management firm and the third biggest Dutch asset manager. NN IP offers its services to pension funds, insurers, family offices, independent financial advisers, banks and private individuals; in addition to managing the assets of the NN Group.
A shareholder committee is a committee formed with the Chairman of the Board to assess the current board of directors and assess potential future directors. A shareholder committee typically holds two or three short meetings a year. A shareholder committee is created in two ways 1) when a vote to do so passes at a general shareholders meeting in response to a resolution to hold such a vote. The vote is advisory however ‘it would be a pretty ballsy board to reject it’ said ICGN Chairmans answer from the 2010 ICGN Conference in London. or 2) By accepting an invitation to meet with the Chairman of the Board who is also in charge of the Nomination Committee which also proposes and nominates new Directors to be appointed to the Board. The committee of five members is formed with the following principles. The Chairman of the Board as convenor as well as the three shareholders who wish to appoint a member and who have the largest holding in the bank based on shareholdings known on the last banking day, with a recognised private investor shareholder organisation representative. The SNAC Committee has the right, at the expense of the company, to engage a headhunter or other external consultants which the SNAC Committee deems necessary to fulfil its assignment. The Shareholder Nomination to the AGM Committee (SNAC) remains until a new SNAC committee is constituted.
References
- ↑ "The Charity Awards 2015 Shortlist". The Charity Awards. 2015.
- ↑ "When ethics wins the pension fund debate". Times Higher Education. 17 December 1999.
- ↑ "Power struggle over Canada's 'dirty oil' sands". The Telegraph. 6 May 2010.
- ↑ "ShareAction gets organised as AGM season kicks off". The Guardian. 5 March 2015.
- ↑ "ShareAction calls for more member representation and less regulation in pensions". Professional Pensions. 14 July 2015.
- ↑ "Funds 'should be more open' on voting". The Times. 19 May 2015.
- ↑ "Pay revolts: ShareAction highlights non-dissenting asset managers". The Guardian. 18 May 2015.