Shareholder group seeks vote reform

A POWERFUL lobby of shareholder bodies called yesterday for the speedy introduction of electronic voting at company general meetings, claiming that some institutional votes go missing under the current postal vote and show of hands. The lobby group also claimed that institutions need an audit trail so that they can check how share have been voted. The group, representing the main institutional investor bodies in Britain, comprises the Association of British Insurers, The Association of Investment Trust Companies, The Association of Unit Trust and Investment Funds, the Fund Managers Association and the National Association of Pension funds.

In a letter to Sir Nigel Wicks, chairman of CRESTCo, the UK body responsible for settling Stock Exchange trades, the group said it was “extremely concerned” by signs that some votes cast had not been registered. Sir Nigel is therefore asked in the letter to “send a strong signal” to custodians and registrars to make priority of electronic proxy lodgement. A spokesman for CRESTCo responded saying: “The whole issue is already in hand. We have said publicly that we will look at this issue and are issuing a consultation document in early July.” The letter points out that all 19 respondents to a recent survey by the Fund Managers Association said they always voted all their UK shares. It added that this is “worryingly out of step” with company records.

By Dominic White, Daily Telegraph

20 June, 2001

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