ABI proposal calls for more director accountability

By SAM FLEMING FOR MAILONLINE
Updated:

Company directors may be forced to submit themselves for annual reelection under tough proposals floated by some of Britain's leading institutional shareholders.

The Association of British Insurers said the practice, which is already seen at firms such as BP and Vodafone, could be adopted widely among publicly listed companies.

It comes after Barclays' directors attempted to quell shareholder ire over a botched Middle Eastern fundraising by putting themselves up for election.

New proposals would mean company directors submitting themselves for annual re-election, as Vodafone already does

New proposals would mean company directors submitting themselves for annual re-election, as Vodafone already does

In a report, the ABI asked 'whether it is appropriate to make the annual reelection of directors best practice'.

Peter Montagnon, ABI's director of investment affairs, said the idea is not yet official policy but it 'seems to be gathering support'.

Companies are apparently not putting up as much resistance as might have been expected.

Institutional investors are scrambling to prove they are engaging more actively with companies after a series of financial scandals and banking collapses.

The ABI also called for a pan-European 'supervisor of supervisors' to oversee the region's financial sector.

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