Corporate governance – Page 22
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Special ReportShareholder class actions in Europe: the benefits and risks of participating
Litigation outside the United States, and in particular in Europe, has been on the rise since the US Supreme Court’s landmark 2010 decision in Morrison v. National Australia Bank. In Morrison, the US Supreme Court ruled that “foreign” (non-US) investors cannot bring federal securities lawsuits in US courts to recover investment losses relating to foreign-issued securities traded on foreign exchanges (known as “F-cubed” claims). As former Justice Antonin Scalia explained, the concern was to prevent the US from becoming “the Shangri-La” of class-action litigation for lawyers representing those allegedly cheated in foreign securities markets. Although federal courts have since struggled to apply Morrison’s effect test consistently, it is clear, more than 10 years later, that the decision has had its intended effect.
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Special ReportManaging risk in securities class actions
Securities class actions (SCA) are a form of collective redress. Shareholders seek compensation for losses suffered as a result of some form of corporate misconduct. They rely upon free market forces, its rules, regulations and factors affecting market price. For professional shareholders such as institutional investors, it is best to look upon any involvement with SCAs as another form of investment yielding a potentially, significant return in future. The duties of any institutional investor – whether as a fiduciary or otherwise – is to focus on what is in the best interests of the fund and its beneficiaries. It does not require the expenditure of more money (or the value of management time) than is likely to be received. What is necessary is the consideration of the issues and the management of risks.
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Opinion PiecesSuper funds voice corporate governance concerns with Australian business
At its recent annual general meeting in Melbourne, Qantas, Australia’s national carrier, was lambasted by irate shareholders over a litany of grievances, not least the role of chairman Richard Goyder and the board over what shareholders saw as the mismanagement of the airline.
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Special ReportDouble-edged benefits of litigation financing
European pension funds have become familiar with class action litigation, often tying it in with their fiduciary responsibilities as shareholders. Cases against UBS regarding its takeover of Credit Suisse; EY as auditor of fraudulent German payments firm, Wirecard; and Silicon Valley Bank, which collapsed in March, are the headliners of 2023.
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Special ReportUSS settlement with Petrobras and PWC Brazilian subsidiary
In February 2018, the Universities Superannuation Scheme (USS) reached a settlement with PWC’s Brazilian subsidiary as part of a class action lawsuit against Petrobras.
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Special ReportColorado fire and police settle with Cognizant
In August 2021, Fire and Police Pension Association Colorado (FPPA), alongside other plaintiffs, reached a settlement with Cognizant Technology Solutions Corporation for $95m (€88.7m).
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NewsAcademic slams NBIM CEO backing of BlackRock gender research
London Business School professor accuses NBIM leader of spreading misinformation with social media post about ‘seriously flawed’ BlackRock gender diversity report
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NewsSwiss scheme expands exclusion policy to oil and gas companies
The pension fund has 439 companies on its exclusion list as of September this year
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AnalysisTrust will matter in light of market dominance of UBS in Swiss institutional business
One of the most important aspects of the downfall of Credit Suisse and the subsequent takeover by UBS is that loss of trust comes at the highest possible cost
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InterviewsLabels proposal about ‘lowering expectations where they were too high’, says PRI’s Fabian
‘Everyone in the sustainable finance industry knows there’s a problem with not being clear enough’: Fabian on updating the PRI’s member expectations
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NewsPRI pushes for ESG clarity axing reporting rules, asking members to pick motivations
UN-backed body plans to overhaul its expectations from members in response to changing responsible investment landscape
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NewsESG and climate change ‘at the core’ of PPF stewardship strategy
‘The focus on understanding long-term material risks and opportunities has continued unabated,’ says PPF CIO
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NewsChurch Commissioners for England boosts responsible investment activity
‘Our integrated approach to responsible investment aims to affect real change in the wider economy,’ says First Church estates commissioner
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NewsInvestors call on European Commission to outline clear social impact investment rules
A clear definition of ‘social investment’ is still missing, a gap that hinders social impact investments, investors warn
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NewsAP3 sets out framework to eye impact of countries, firms on human rights
Swedish pensions buffer fund says mission to be a responsible owner means it does invest in companies and sectors with high risks regarding human rights
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NewsSmart Pension discloses 75% emissions reduction target by 2030
The scheme is now two years ahead of its target
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Opinion PiecesViewpoint: A response to ISSB’s Faber’s ‘triple illusion’ criticism of double materiality
Frédéric Ducoulombier, of EDHEC-Risk Climate Impact Institute, says the ISSB chair straw-mans the positions of advocates of the EU ESRS’s double materiality
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NewsCFA launches DEI code to accelerate change in investment organisations
The code calls on firms to commit to six metric-based principles that will lead to greater inclusion of wider viewpoints from the best talent
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NewsCEO commitment on mental health lacking, CCLA global benchmark shows
There is a clear economic case for investment in mental health at work, says CCLA stewardship lead
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NewsTransition Plan Taskforce unveils final climate transition guidance
There are now almost 50 taxonomies under development globally
