Who are Institutional Investors?
• Institutional Investors manage funds invested by individuals.
• They are the biggest investors in many stock markets.
• They can wield great power over the companies in which they invest.
• Examples are: Pension funds, insurance companies, investment and unit trusts.
Ways of exercising institutional investors’ influence:
1. One-to-one meeting – discussion with chairman, directors or auditors.
2. Voting – Propose resolutions in AGM or EGM, not to re-elect directors.
3. Focus list – putting companies names on a list of underperforming companies
4. Contributing to corporate governance voting systems that measures the corporate governance performance indicators
5. Complain to regulators
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