AIC calls for reforms to protect investors’ voting rights

January 31, 2025

The Association of Investment Companies (AIC) has launched a campaign urging legal reforms to guarantee all investors can exercise their voting rights.

The ‘My share, my vote’ campaign aims to end poor practices among some investment platforms and providers, including withholding voting rights and information, charging customers to vote, and refusing to cast votes even when requested.

The AIC has called on the UK’s Secretary of State for Business and Trade Jonathan Reynolds to amend company law to require nominees, including retail investor platforms, to provide information and voting rights to the beneficial holders of shares.The association has proposed amending the Companies Act 2006 to mandate nominees, such as platforms, to pass on company information and voting rights unless the customer opts out.

It also suggested changes to the law to ensure that if a customer does opt out, the nominee has a periodic requirement to confirm if this remains the customer’s preference and allow any opted-out customer to opt-in, on demand.

Richard Stone, chief executive of AIC, said: “It’s simply unacceptable that investors find themselves left in the dark about their right to vote, prevented from voting or charged for the privilege. If we are serious about shareholder democracy, investors must be able to have their say.”

The AIC says these poor practices among investment platforms and providers have surfaced following Saba Capital's calls for emergency shareholder meetings at seven UK investment trusts.

Since Saba’s actions, many major platforms have acted swiftly to keep customers informed and facilitate their voting, however others have not, leaving some customers unable to vote or facing charges to do so, according to the AIC. 

Minerva’s blog focuses on the latest developments in ESG investing and stewardship. Minerva is a global provider of sustainable stewardship solutions with over 25 years of expertise. Minerva empowers investors by providing essential tools, including ESG research and data, enabling them to navigate the intricate landscape of stewardship and proxy voting, whilst ensuring their decisions are well-informed and aligned with sustainable principles.

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