The Association of Investment Companies (AIC) has responded to today’s King’s Speech which sets out the government’s legislative agenda for the coming parliamentary session.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “It’s disappointing that the government has missed an opportunity to push forward with the reforms it has promised to enfranchise retail investors.
“Unfortunately, we are still in a situation where platforms and other nominees can choose whether to pass on company information and voting rights to underlying retail shareholders. The resulting dislocation between companies and their shareholders hands disproportionate power to motivated minority shareholders like Saba Capital.
“We will continue to press the government to fulfil its promise to enact the Bill of Shareholder Rights proposed by the Digitisation Taskforce.”
AIC data shows that where companies have a higher level of retail shareholders, turnout is lower. Voting turnout at AGMs is 52% where retail shareholders hold less than 25% of the shares, but only 35% where retail shareholders hold more than 25%.
The AIC has previously called on the Chancellor of the Exchequer, Rachel Reeves, and the Secretary of State for Business and Trade, Peter Kyle, to speed up voting legislation to enfranchise all shareholders.
