UK - New corporate governance guidelines that require companies to publish levels of abstentions have been welcomed by Pensions Investment Research Consultants.
It pointed out that information provided by publicly-listed companies on voting numbers was often misleading because it included abstentions in the “for” voting summaries.
But under the revised combined code – which incorporates Higgs’s review on corporate governance – companies must publish levels of abstentions.
PIRC says this will give a better analysis of the way pension funds are acting on corporate governance.
A PIRC spokesman said: “Many institutional investors use abstentions to send a warning signal to the company that they have concerns about a particular issue.
“Ignoring abstentions allows the company to portray a higher level of support.”
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