News
Many companies are today guilty of prosaic, tick the box compliance reporting with the UK Governance Code. To help public companies move beyond this, and meet the spirit of the new Governance Code from the Financial Reporting Council, the Investor Relations Society (IR Society) has created a Good Practice Guide, now open to consultation.
Investor engagement is at the heart of the proposed new Governance Code creating new ‘comply or explain' obligations. It places great emphasis on improved communication between companies and their institutional investors, while the proposed Stewardship Code creates obligations on investors to engage with those companies whose shares they own. Boards of public companies are encouraged to provide regular and meaningful access, and to expand disclosures around how they have done so.
Mark Hynes, Chair of the IR Society's Policy Committee said "The FRC Governance Code stops short of saying "how" this engagement should work. So with help from leading in-house IR and governance professionals, the Society has created practical advice on how to achieve best practice. This includes advice on two-way communication between boards and their IR teams, involving IR in the corporate strategy processes, the increasing influence of proxy advisors, the use of web communications, and reporting on investor contacts and concerns."
Commenting, Richard Davies, Chairman of the IR Society said "whatever the rights and wrongs of the heated 'stewardship' debate, companies will always need to engage with institutional investors. The wider issue is how to achieve best practice, so the IR Society has today launched a consultation paper on how to improve such communications".
The Good Practice Investor Relations Guide is open to consultation until the 7th May 2010. Comments on the proposed Guidance set out in this consultation document are requested by 7th May 2010. Responses should be sent by e-mail to: Michael.Mitchell@IRS.org.uk or in writing to, Michael Mitchell, General Manager, the Investor Relations Society, 3 Bedford Street, London WC2E 9HD.
It is the IR Society policy to publish on its website all responses to consultations issued by the Society unless the respondent explicitly requests otherwise.
The Consultation Paper and details on how to reply can be accessed here.
Investor Relations Society Contacts:
Michael Mitchell, General Manager: 020 7379 1763
Mark Hynes, Chairman, Policy Committee: 07957 430333 (mark@transparencymatters.co.uk)
Notes for editors.
The Investor Relations Society represents members working for public companies and consultancies to assist them in the development of effective two way communication with the markets and to create a level playing field for all investors. It has nearly 600 members drawn both from the UK and overseas, including the majority of the FTSE 100 and much of the FTSE 250.
Published: 30 March, 2010