The Forum is already undertaking engagement with a number of financial institutions over issues such as remuneration and audit. In releasing a public statement LAPFF hopes to both encourage the ongoing process of governance reform, and give companies a clear idea of what leading institutional shareholders are thinking.
In terms of directors the Forum intends to -
In respect of audit the Forum plans to –
Finally, LAPFF believes there is a case to require companies to prepare a risk report as part of their audit committee report to shareholders, and that the audit committee 2 report should be subject to an annual shareholder vote.
LAPFF chairman Cllr Ian Greenwood said: “In the aftermath of the financial crisis long-term shareholders need to take a serious look at what has gone wrong. In issuing this public statement, LAPFF intends to both provide its own perspective on the crisis, and contribute to the debate on how reform should progress. We need to address all the areas where there have been failures. Just as we call on companies to reform, as owners of those businesses we must also put our own house in order. Given the scale of what has happened, this is a time for serious reform, not cosmetic changes.” More information can be found at LAPFF Statement on crisis