The Legal Research On The Proxy Advisory Firm Of Institutional Investors

Institutional investors typically own securities positions in a large number ofissuers. Therefore, they are presented annually with the opportunity to vote on manymatters and often must exercise fiduciary responsibility in voting.Some institutionalinvestors may retain an investment adviser to manage their investments, and may alsodelegate proxy voting authority to that adviser. To assist them in their votingdecisions,investment advisers (or institutional investors if they retain voting authority)frequently hire proxy advisory firms to provide analysis and voting recommendationson matters appearing on the proxy. In some cases, proxy advisory firms are givenauthority to execute proxies or voting instructions on behalf of their client. Someproxy advisory firms also provide consulting services to issuers on corporategovernance or executive compensation matters, such as helping to develop anexecutive compensation proposal to be submitted for shareholder approval. Someproxy advisory firms may also qualitatively rate or score issuers, based on judgmentsabout the issuer’s governance structure, policies, and practices. As discussed in moredetail elsewhere in this release, some of the activities of a proxy advisory firm canconstitute a solicitation, which is governed by our proxy rules.Some, but not all,proxy advisory firms operating in our markets are currently registered with us asinvestment advisers. Along with our country economy development and the improvement andperfection of the social insurance system, including the social insurance funds,pension funds, the scale of the financial investment company growing, institutionalinvestors species diversity.After China’s entry into the WTO, the domestic securitiesmarket gradually opening force nor institutional investors to create the loose policyenvironment.Our country law has also been gradually relax restrictions oninstitutional investors, investment activities, this to promote their active participationin governance of listed companies.The transplantation of the vote for institutionalinvestors, a consultancy created the market and policy environment.In this paper, starting from the introduction to American vote consultancy,through thestudy of the development history and present situation, combining with thefirst big vote consultancy service content to review, at the same time analyze theproblems arising from practice, tries to summarize the vote consultancy theestablishment of the background and the present situation.At the same time,combining with the study of China’s capital market, the transplantation of consultancysystem Suggestions for voting.In this paper, besides introduction and conclusion, isdivided into three parts.The first chapter is to vote against the United States the principle and the presentsituation of consultancy.Includes the first quarter: America vote consultancybackground.The second section, the far east service introduction.The third section: theUnited States vote consultancy development present situation.The second chapter is the introduction of the necessity and feasibility of votingconsultancy study.Including background research on the development of China’scapital market institutional investors, the demand for governance of listed companies.The third chapter is China consultancy, system design.Based on the experienceof the developed countries such as Britain and America, combining the presentsituation and the particularity of Chinese capital market, the system of the targetedSuggestions.Finally the author through the conclusion, summarized the views on the full textand summarized.