Investments company calls for suffrage rethink

Wed, 25 Apr 2007

The issue of investor suffrage has been raised by an investments specialist that fears some nominee shareholders wield a lack of influence in listed companies.

According to financial services provider Alliance Trust, it is widely believed that half of all private shareholdings are now held through nominee companies.

And a number of investments experts have expressed fears that nominees may not be given an equal say in the running of businesses in which they own shares.

This comes in spite of the fact that the new Companies Act specifically prescribes that all investors should be permitted to opt in to vote at the annual general meetings of listed companies.

Alan Harden, chief executive of the investments provider, explained the problem facing many people who own shares via nominee businesses.

"Many companies and nominees pay lip-service to the right of people to vote but do nothing in practice," he said.

"We believe that all investors should have the same rights, no matter how they hold shares."

In other investments news, Tim Rees, UK equities portfolio manager for investments company Clerical Medical, recently asserted that growth prospects for UK shares remained "solid" in spite of recent market fluctuations.

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