Voting is a way for active owners to influence companies. If there are important issues and a company is not willing to listen to shareholders or other stakeholders, voting at its AGM can be a powerful tool. The results of decisions made at AGMs are made public. When shareholders vote against a proposal, a company has to address the issue.
It is practical and effective for asset managers to draw up a voting policy, for example on the basis of the principles of the International Corporate Governance Network. This is an internationally recognized set of best practices for good corporate governance. The principles aim to improve corporate governance, risk management, remuneration policy, shareholders’ rights and transparency.