U.K. National Association of Pension Funds has launched an inquiry into proxy-voting systems by U.K. pension funds that could lead to calls for electronic voting and changes in U.K. company law.
Several U.K. pension funds are discovering votes of their shares are not being recorded, according to Lynn Ruddick, chairwoman, NAPF Investment Company. Pension funds report that over 50% of shares are being voted, but company registrars reveal that only 40% have been tallied. The issue is sensitive because NAPF officials are trying to stave off mandatory share voting.
The NAPF's report on the inquiry is expected to be completed in June, and could lead to a call for electronic trading. Current U.K. company law makes it difficult - if not impossible - to cast votes electronically. Also, the adequacy of notification periods will be examined, especially when banks or custodians must contact clients on specific voting issues.
