Shareholder Voting Research Best Practice Principles

Confidence in the shareholder voting process is key to building strong relationships between shareholders and companies. For that reason, Minerva is a member of the Best Practice Principles Group for Shareholder Voting Research

As a signatory to the Principles, we have produced a statement affirming our commitment to the Principles and its associated Guidance. Minerva’s Best Practice Principles statement can be downloaded here or from the BPP Group Website.

Minerva, trading as Manifest, has been actively involved in the development of the BPP Group Principles since February 2013.

History of the BPPG

The BPPG is an independent and global group of service providers which came together to address a recommendation from the European Securities & Markets Authority (ESMA) that the shareholder voting research industry should seek to improve understanding and transparency of the role of firms which provide services to institutional investors.

Following a review and consultation about the role of the proxy advisory industry in 2013, ESMA concluded that:

“(I)t has not been provided with clear evidence of market failure in relation to how proxy advisors interact with investors and issuers. On this basis, ESMA currently considers that the introduction of binding measures would not be justified. However, based on its analysis and the inputs from market participants, ESMA considers that there are several areas, in particular relating to transparency and disclosure, where a coordinated effort of the proxy advisory industry would foster greater understanding and assurance among other stakeholders in terms of what these can rightfully expect from proxy advisors. Such understanding and assurance will help to keep attention focused where it belongs, namely on how investors and issuers can, from their respective roles foster effective stewardship and robust corporate governance, and ensure efficient markets. Consequently, ESMA considers that the appropriate approach to be taken at this point in time is to encourage the proxy advisory industry to develop its own Code of Conduct.”

The resulting principles were put to a public consultation in December 2013 and the final principles were published in March 2014. The principles were updated again in 2019 after another public consultation and in 2020 an independent oversight committee (IOC) was created. The IOC has since published a report detailing its findings on the application of the principles.

For further information about the Principles please contact us by email via hello@minerva.info or call us on +44 (0)1376 503500.

Last Updated: 26 January 2021