The QCA’s latest survey reveals how public companies are forced to race against time to correct basic errors and misunderstandings in materials produced about them by proxy advisers.
“When such a premium is put on good governance to support growth, it is hugely worrying that companies are so easily misunderstood or seemingly misrepresented and open dialogue is frowned upon.” ~ James Ashton - Chief Executive, the QCA.
In a recent survey from the Quoted Companies Alliance, over half of respondents said they had less than 48 hours to review and challenge research reports containing voting recommendations about them before circulation to shareholders in AGM season, with many stating they had under 24 hours before reports were published.
The research comes as the Financial Reporting Council continues its review of the UK Stewardship Code 2020, which includes principles for service providers. One of the primary areas under review is the level of transparency in proxy adviser practices.
Over three-quarters of companies that queried a voting recommendation found proxy advisers to be unresponsive, and many found these firms to be unreceptive to engagement even outside the AGM season.
The survey found factual errors - such as inaccurate reporting of companies’ profit performance or board composition - occurred regularly.
With the ramifications of these issues including negative media coverage, depressed market sentiment, and strained investor relations, the QCA’s survey highlights significant shortcomings in the practices of proxy advisers.
Learn more
Follow this link to download your copy of the report.
For further information, contact:
Ruby Halabi | Communications Officer, The Quoted Companies Alliance
ruby.halabi@theqca.com | 020 7397 8140
About the Quoted Companies Alliance
The QCA champions the UK’s community of small and mid-sized publicly traded businesses and their advisors, offering a platform that advocates for proportional regulation, transparent growth, and economic resilience in leadership and governance.
https://www.theqca.com/