EUROPE - Listed companies need better ways to communicate with long-term institutional and retail investors to avoid a continued outflow of funds from equity markets, EuropeanIssuers (EI) said.
The advocate for listed companies said the growth of international shareholders and the growing number of intermediaries is disconnecting companies from their shareholders.
And it warned this had resulted in the market value of companies moving separately from their true values.
EI chairman Jacques Schraven said companies' shareholder base has become unstable and "that long term corporate strategies for the creation of sustainable value are frustrated".
"We have a problem of corporate governance," said EI secretary general Dorien Fransens. "From day one companies have been telling me that they do not know who their shareholders are."
She added: "In general, participation of institutional investors at shareholder meetings is not very high, but that's because it's not easy on an international level."
She said a long string of intermediaries may stand between a shareholder and the company. Intermediaries, like custodians, should provide companies with details of who their shareholders are, said Fransens.
The advocacy group also recommends setting up shareholder rights that are contingent with the length of ownership, offering a loyalty dividend, or multiple voting rights for long-term owners.
Schraven explained: "Those with a genuine interest should take the decisions, not the fruit flies who will have long disappeared when the effects of these decisions become reality."
The government is in talks with the UK and Irish pensions regulators over how to protect members of cross-border schemes in the event of a no-deal Brexit.
The equalisation of guaranteed minimum pensions (GMPs) is at least two years away from being completed, and could take longer than four years for some schemes, a poll has found.
The Pensions Regulator will consider if schemes should be required to have professional trustees and assess the case for greater regulation of administrators and system providers, PP can reveal.
UK inflation fell from 2.3% to 2.1% in December, approaching its lowest rate for two years, according to the Office for National Statistics (ONS).