12 institutional investors sign stewardship codes designed by TWSE | Economics | FOCUS TAIWAN – CNA ENGLISH NEWS

A total of 12 institutional investors in Taiwan have signed stewardship principles designed by the Taiwan Stock Exchange (TWSE) to show their determination to push for improvements in corporate governance in the local equity market, according to the exchange.

The TWSE, which operates the local main board, said that the 12 institutional investors include four major government-led funds — the Chunghwa postal fund, the labor fund, the national development fund and the pension fund.The exchange said it hopes that more than half of the 38 institutional funds operating in Taiwan will sign the stewardship principles in the near future.

The principles have been drawn up at a time when institutional investors are playing a more critical role in the local equity market, accounting for a higher share of turnover in the equities market.

Stewardship responsibility for institutional investors will require these investors to pay close attention to the operations of the listed companies in which they have invested and attend the invested firms’ annual general meetings to cast their votes as shareholders, according to the TWSE.

In addition, the stewardship responsibility will also encourage institutional investors to communicate with the management of the invested companies as a way of strengthening corporate governance in the long run, the exchange said.The TWSE released the principles June 30 in the hope that institutional investors will help listed companies to strengthen their corporate governance, while the requirements written in the stewardship principles are expected to raise communication and exchanges between institutional investors and listed companies.

The TWSE said that the move to push for such principles have become a trend in the global financial markets.

Source: 12 institutional investors sign stewardship codes designed by TWSE | Economics | FOCUS TAIWAN – CNA ENGLISH NEWS

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s