Large Investors, Small Obligations: How to Engage EU Shareholders

Aleksandra Pajic, Ph.D., LL.M. Lecturer in Securities Regulation, University of Saskatchewan Targeted development of the EU corporate governance framework is a timely and necessary move. The past few years have shown some serious shortcomings in corporate governance of EU companies. The lack of effective control mechanisms has contributed to excessive risk taking, and subsequently to failures of many financial and non-financial institutions. Those failures are associated with a set of factors: The lengthening of the investment chain; The increasing “short-termism” of the capital markets;[1] The remuneration of institutional investors based on the volume of assets they manage; The costs associated […]