Governance
NBIM warns of erosion in shareholder rights across major markets
Norges Bank Investment Management said shareholder rights are being diminished across markets including the United States, United Kingdom, Europe and Hong Kong. Reuters reported that NBIM is concerned about dual-class voting shares, more voluntary reporting and restrictions on shareholder litigation, and that the fund is advocating on the issue with exchanges, regulators and companies.
NBIM officials told Reuters that shareholder rights were being diminished in markets including the United States, United Kingdom, Europe and Hong Kong. They cited dual-class voting shares, increasingly voluntary reporting requirements and restrictions on investors’ ability to sue companies and boards. The Government Pension Fund Global owns, on average, 1.5% of all listed companies globally, according to Reuters. NBIM said it was advocating on the issue with stock exchanges, regulators and companies, and said guardrails around differential voting structures were important.