Company chairmen are being urged to do more to set the tone of corporate governance.
The call comes from Grant Thornton partner Will Oxley after the publication of the accountants and business advisers latest review of corporate governance among the leading 350 FTSE quoted companies.
The review shows that less than half of the chairmen use their statement in the company’s annual report to make reference to its corporate governance practices while only 10 per cent provide any meaningful insights into how the company establishes its corporate governance.
Mr Oxley also wants shareholders to make greater efforts to engage with the companies they are investing in.
“Dialogue between boards and investors is essential to good governance, however it seems that while chairpersons and non executive directors have an increasing appetite to converse, it is the shareholders themselves who are reticent,” said Mr Oxley.
“Investors need to broaden their engagement if the checks and balances of good governance are to work effectively.”