UK investment trusts demand voting rights for all shareholders

Investment Trust Sector Pushes for Enhanced Shareholder Voting Access

The UK’s investment trust sector has initiated a drive aimed at simplifying the voting process for shareholders on crucial company matters. This campaign seeks to empower investors and ensure their voices are heard on key decisions impacting their investments.

Industry Body Calls for Legal Reform

The Association of Investment Companies (AIC), the leading body for the sector, is set to unveil a formal petition today. This petition urges the Government to amend existing legislation to mandate investment platforms to facilitate shareholder voting rights on resolutions proposed at company meetings.

Currently, while some investment platforms may extend voting rights to shareholders, they are not legally obliged to do so. This disparity raises concerns about equitable shareholder protection and participation.

“Fundamental Right” to Vote

“It is a fundamental right that every shareholder should have the opportunity to vote,” asserted Richard Stone, Director General of the AIC. “Ensuring this right is paramount for good corporate governance and investor engagement.”

Support from Stakeholders

The AIC’s petition has garnered significant backing, including support from Baroness Altmann, former pensions minister. Baroness Altmann emphasized the necessity of legal changes, stating they are “vital to strengthen shareholder protection and promote better corporate accountability.”

Mark Northway, a director at ShareSoc, a prominent shareholder rights organization, has also voiced his support for the campaign, further underscoring the widespread consensus on the need for reform.

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Disclaimer: This information is for informational purposes only and does not constitute financial advice. Investors should conduct thorough research before making investment decisions.