6 - Institutional Investor Stewardship in Italian Corporate Governance

Summary

Italy has a stewardship code, and institutional investors are on the rise, playing an increasingly active role in the governance of listed companies. Against this background, this chapter sheds fresh light on the distinctive features which make the Italian regulatory system unique in promoting active institutional ownership. A distinctive characteristic of the Italian corporate governance system is the so-called slate (or list) voting system, which enables minority shareholders to appoint at least one board member. Also, implementation of the Shareholders Rights Directive and, specifically, the record date system for participating in and voting at general meetings has contributed significantly in turning institutional investors into major players in the corporate governance arena. Moreover, the Investment Management Association, which represents most Italian and foreign asset managers operating in Italy (Assogestioni), plays a particularly effective role by publishing the Italian Stewardship Principles and promoting collective engagement initiatives aimed at facilitating the appointment of management and statutory auditor board members through the slate voting system.