Many corporate collapses in recent years have been linked to poor corporate governance through a lack of checks and balances on the Board, inadequate reporting of financial affairs by auditors and ineffective monitoring by non-executive directors. Good corporate governance cannot be a guarantee against loss, but it can help to reduce the risk of business failure. To assist shareholders in their goal of reducing risk, PIRC's Corporate Governance Service analyses the structure of company boards, including audit and remuneration committees, focusing on checks and balances, board responsibilities and the independence of non-executive directors and auditors. Our reports also track corporate connections between directors and other advisers in order to give a clear overview of inter-relationships. The third interest shareholders have is enhancing value through their corporate governance activity.
Shareholder activism aims to improve corporate performance and thus enhance returns.
Many investors take the view that companies will benefit from a closer relationship between shareholders and the Board, particularly on questions of long term strategy. PIRC's Service is now used by private and public sector pension funds and investment managers with combined assets of over 300 billion. The PIRC Corporate Governance Service is unique in the UK in being based on in-depth research and wholly independent analysis. PIRC is owned by its directors and thereby avoids conflicts of interest in the financial markets. From assessing compliance with the Combined Code, to analysing directors' independence and remuneration, PIRC has an unrivalled reputation as independent and professional experts on UK corporate governance.