In the UK, the US and many other countries, existing board election processes mean shareholders rely almost entirely on existing board members to identify board candidates. In the vast majority of cases, shareholders have no real say over who is chosen to represent their interests and those of the company they own. Board nomination committees are sub-committees of the board itself. Over the last 10 years, Sweden has moved away from such a system.This report examines the Swedish experience of shareholders taking this key governance function into their own hands. The report also considers lessons that can be drawn for governance in the UK and other countries with dispersed shareholdings.  It  concludes with an agenda for action by listed companies, institutional investors, the Institutional Shareholders Committee  and the Financial Reporting Council. 

In the UK, the US and many other countries, existing board election processes mean shareholders rely almost entirely on existing board members to identify board candidates. In the vast majority of cases, shareholders have no real say over who is chosen to represent their interests and those of the company they own. Board nomination committees are sub-committees of the board itself. Over the last 10 years, Sweden has moved away from such a system. This report examines the Swedish experience of shareholders taking this key governance function into their own hands. The report also considers lessons that can be drawn for governance in the UK and other countries with dispersed shareholdings.  It  concludes with an agenda for action by listed companies, institutional investors, the Institutional Shareholders Committee  and the Financial Reporting Council. 

Tomorrow’s Owners – defining, differentiating and rewarding stewardship is a report on work in progress since our first report last year. We describe in this document The Tomorrow’s Company Stewardship Principles. These are intended to provide a foundation for differentiating between good and bad stewardship.The report also describes how changes in shareholder and board practice could be encouraged by the development of a kite mark for stewardship investment, and how government could act to promote improved stewardship.In parallel, we are studying the Swedish approach to nomination committees and considering the potential for this approach to improve the stewardship of companies in the UK.   

The King Committee on Corporate Governance was set up in 1992 in South Africa, their recomendations formed large parts of the South African Companies Bill which passed through both houses last year and will come into law in 2010.  This is a draft copy of their 3rd report; comments are welcome!