The National Association of Pension Funds (NAPF) has finalised its Corporate Governance Policy and Voting Guidelines. As pension funds are one of the largest investors in quoted companies, the importance of the new guidelines could not be over emphasised and have particular relevance to meetings tabled at short notice.
The updated guidelines follow the UK Corporate Governance Code (Code) published in June 2010 with similar headings and categories for consideration, including leadership, effectiveness, accountability, remuneration and relations with shareholders.
Although following similar lines, NAPF’s guidelines provide additional commentary where a quoted company seeks to call meetings on less than 21 days’ notice. Quoted companies should take note that NAPF place emphasis on shareholders voting against resolutions that have been tabled at meetings convened at short notice with little justification for the shorter notice period. NAPF’s intentions are to ensure that shareholders have ample opportunity to consider the voting implications and the subject matters in question.
For further information please contact Jeremy Orrell on 0844 391 5829.
The NAPF guidelines can be accessed here: NAPF guidelines (43 page PDF).