Stewardship code promises investor clampdown on badly run companies
- FRC’s Stewardship Code sets out investors' responsibilities for the first time
- Code hits back at accusation that investors inaction led to "ownerless corporations"
- Catalyst for better engagement between shareholders and companies, FRC says
Fund managers and foreign investors in UK companies will for the first time be publicly accountable for how they monitor the boards and performance of groups they invest in, according to a new code published last week.
The Stewardship Code, published by the Financial Reporting Council, sets out the extent of investors' responsibilities for the first time and follows the publication in May of the updated UK Corporate Governance Code for listed companies.
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