IMA rejects Treasury approach to shareholder activism

The Investment Management Association (IMA) says the government's approach to encouraging shareholder activism to improve corporate governance and investor returns is flawed. This view is expressed in the IMA's response to the Treasury/DWP consultation paper titled: "Encouraging Shareholder Activism". While there is a recognisable link between accountability and the wish to maximise investor returns, the IMA does not believe legislation is the best way to ensure the latter happens. The proposals as they stand are too vague and would encourage fund managers to adhere to com...