Financial Times FT.com

Investors ‘lack basic rights’ on US boards

By Kate Burgess in London and Jeremy Grant in Washington

Published: October 27 2006 22:40 | Last updated: October 27 2006 22:40

Some of the world’s largest investment managers have called on US regulators to give shareholders power to change the composition of US boards, claiming shareholders in US companies “lack basic rights which they take for granted in other developed countries”.

The call is a sign that one of the key tenets of US corporate governance – limited shareholder access to company proxies for board elections – is coming under attack from non-US investors as foreign ownership of US companies grows.

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