Dissent against resolutions at UK meetings is the lowest in Europe, according to research by Manifest, the UK-based corporate governance and proxy voting service.
Voting at Italys S&P/MIB 40 index showed 10.62% average dissent with 7.5% on average for Frances CAC 40.
However, disclosure rates also vary significantly, says Manifest. The UK has a significantly higher rate of meeting data disclosure than other European countries. The average rate of disclosure for the FTSE All-Share for 2005 was 75.09%, ranging from 99.22% in the FTSE 100 to 44.67% in the Fledgling index.
In comparison the highest rate of disclosure of voting data in blue-chip indices across Europe was only 45.65%. The average rate of disclosure for Germanys DAX 30 was 90.9%, putting it considerably ahead of its nearest rival, the S&P/MIB 40 with 63.16%. At the bottom of the scale was Sweden with an average disclosure of 7.14%.
One area in which Continental Europe outstrips the UK is in website disclosure. UK companies still seldom disclose proxy poll data on their website or through regulatory news announcement services.
Although the UK is edging ever closer to the UK governments objective for 60% voting turnout at shareholder meetings, turnout was even higher in Switzerland and Spain, averaging 61.31% and 59.32% respectively. Average turnout in the FTSE 100 rose from 56.05% in 2004 to 58.25% in 2005; and in the FTSE 250 from 57.03% in 2004 to 59.03% in 2005.
The research also highlights many of the significant difficulties that investors face in cross-border voting. There is significant voting distortion in France, the Netherlands and Sweden; Italy is home to a vast array of complex shareholder agreements; and this year France was under the spotlight for its companies tendencies to grant shareholders double voting rights. Not only do multiple voting rights disenfranchise shareholders, but by obscuring the veracity of poll data hinder the quality of engagement between a company and its owners.
Fundamental changes need to happen and pan-European standards adopted in order to ensure shareholders exercise their cross-border voting rights,” says Manifests Managing Director, Sarah Wilson. “Voting practices in Sweden, Finland, Norway and Denmark need to be revolutionised to bring them into line with 21st century best practice. We also need to see the depth of advance disclosures ahead of the meeting improve significantly. Italy, Spain, France and Portugal could look to Germany as an example as to how best practice can evolve without the need for complex regulatory changes. Investors need to be better informed than ever before about the context of their voting and governance strategy. Manifests European Proxy Poll Data Report plays a significant role in facilitating informed investor-issuer dialogue. This analysis enables a detailed understanding of voting trends and resolution issues across Europe, framed in a local context.
For the first time, Manifests annual review of proxy voting trends has been extended to cover national blue-chip indices in Belgium, France, Germany, Ireland, Italy, the Netherlands, Spain, Sweden and Switzerland.