NAPF amends corporate governance policy

The trade body said the revisions reflected developments in regulation and market practice during 2009 - including the recently released Institutional Shareholders Committee's Code on Shareholder Engagement.

In its revised policy, the NAPF called for institutional investors to apply the ISC's code in advance of the Financial Reporting Council's review of the Combined Code.

It also incorporated the ISC's Code on the Responsibilities of Institutional Investors and encouraged investors to review how they apply the code and monitor its application by their investment managers.

The NAPF also said it expected companies to give as much notice as possible when calling a general meeting and said the flexibility of the Shareholder Rights Directive to call a meeting at 14 days' notice should only be used in limited circumstances.

The NAPF added it was likely to re-issue its governance policy in autumn after the consultation on the FRC's Review of the Combined Code ends on March 5.

In November last year, the NAPF sent remuneration guidance to FTSE350 chairmen urging executive pay restraint and that company remuneration be aligned with the long-term interests of shareholders (PP Online, November 13).