Vanguard urges closer contact between investors and boards

The world's second largest fund manager is calling for an improvement in the relationship between company directors and shareholders, on concerns about global corporate governance.

According to the Financial Times, Vanguard, is planning to write to company boards in the new year to suggest the creation of 'shareholder liaison committees'. These would encourage independent directors to meet with investors, in order to better align themselves with their needs. It would allow investors to express their opinions on how a company’s strategy compares with its competitors, or to suggest questions independent directors should be asking of management, Vanguard proposed. Bill McNabb, Vanguard chief executive, told the FT it is wrong that many directors had never met sh...