Book contents
- Board-Shareholder Dialogue
- International Corporate Law and Financial Market Regulation
- Board-Shareholder Dialogue
- Copyright page
- Contents
- Contributors
- Foreword
- The Dialogue between Corporations and Institutional Investors
- 1 The New Corporate Governance
- 2 Shareholder Voice and Corporate Purpose
- 3 The Purpose of Corporate Purpose Statements
- 4 Systemic Stewardship with Tradeoffs
- 5 Giant Asset Managers, the Big Three, and Index Investing
- 6 Something Old, Something New
- 7 The Perils and Promise of Shareholders as Stakeholder Advocates
- 8 How to Facilitate ESG Investor Engagement
- 9 Emerging ESG-Driven Models of Shareholder Collaborative Engagement
- 10 ESG and Board-Shareholder Engagement in M&A
- 11 How Does Board-Shareholder Engagement Really Work?
- 12 Shareholder Engagement inside and outside the Shareholder Meeting
- 13 The Viability of Blockchain in Corporate Governance
- 14 Shareholder Engagement in East Asia
- 15 Board-Shareholder Engagement and Directors’ Appointments
- 16 Shareholder Proposals and the Debate over Sustainability Disclosure
- 17 Board-Shareholder Engagement and Disclosure Obligations under Corporate Governance Codes
- 18 Board-Shareholder Engagement and Insider Regulation
- 19 Market Soundings Rules
9 - Emerging ESG-Driven Models of Shareholder Collaborative Engagement
Published online by Cambridge University Press: aN Invalid Date NaN
- Board-Shareholder Dialogue
- International Corporate Law and Financial Market Regulation
- Board-Shareholder Dialogue
- Copyright page
- Contents
- Contributors
- Foreword
- The Dialogue between Corporations and Institutional Investors
- 1 The New Corporate Governance
- 2 Shareholder Voice and Corporate Purpose
- 3 The Purpose of Corporate Purpose Statements
- 4 Systemic Stewardship with Tradeoffs
- 5 Giant Asset Managers, the Big Three, and Index Investing
- 6 Something Old, Something New
- 7 The Perils and Promise of Shareholders as Stakeholder Advocates
- 8 How to Facilitate ESG Investor Engagement
- 9 Emerging ESG-Driven Models of Shareholder Collaborative Engagement
- 10 ESG and Board-Shareholder Engagement in M&A
- 11 How Does Board-Shareholder Engagement Really Work?
- 12 Shareholder Engagement inside and outside the Shareholder Meeting
- 13 The Viability of Blockchain in Corporate Governance
- 14 Shareholder Engagement in East Asia
- 15 Board-Shareholder Engagement and Directors’ Appointments
- 16 Shareholder Proposals and the Debate over Sustainability Disclosure
- 17 Board-Shareholder Engagement and Disclosure Obligations under Corporate Governance Codes
- 18 Board-Shareholder Engagement and Insider Regulation
- 19 Market Soundings Rules
Summary
Ownership structure changes, like capital concentration in funds, theoretically shouldn’t alter passive incentives, given fee competition and single-company engagement costs. Free rider problems also contribute to passivity. Despite these, recent factors boosting involvement include: (i) the influence of major investment funds, (ii) growing use of proxy advisors by institutional investors, (iii) political pressure and stewardship considerations, and (iv) collaboration, especially among hedge funds. ESG investing could be a game changer due to millennial demand, systemic risk reduction, and fee opportunities. This prompts institutional investors to shift from passive to active engagement, fostering collaboration. New collaboration forms include: (i) among major funds, (ii) between hedge and ESG funds (wolf pack activism), (iii) among non-activist institutional investors, and (iv) on new platforms like Climate Action100+ and PRI. Legal risks and obstacles, such as acting in concert, insider trading rules, and antitrust laws, are explored, with suggestions to enhance collaboration opportunities and ways of bolstering opportunities for collaboration.
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- Board-Shareholder DialoguePolicy Debate, Legal Constraints and Best Practices, pp. 270 - 296Publisher: Cambridge University PressPrint publication year: 2024