Latest news with #corporate governance
RNZ News
3 hours ago
- Business
- RNZ News
Company directors load up on liability insurance as legal risks increase
Recent court decisions, including one involving Mainzeal, have set legal precedents that have spilled over into corporate governance. Photo: CC BY-SA 3.0 / Schwede66 Company and organisation directors are facing a growing storm of risks driven by legal uncertainty, rising company liquidations and the rise of litigation funding according to a new report from the Institute of Directors . The D&O Insurance- the Shifting Sands of Risk report said claims were likely to increase in the future, and the recent fall in the cost of directors and officers liability (D&O) insurance appeared to have bottomed out. Recent court decisions involving Mainzeal and Whakaari/White Island have set legal precedents that have spilled over into corporate governance, particularly in the fields of health and safety, climate change and the use of artificial intelligence. "From boardrooms to courtrooms the expectations on directors have expanded significantly," the institute's general manager Guy Beatson said. He said uncertainty was being fuelled by how the 30-year-old Companies Act would relate to solvency and the duties and personal liabilities of directors. The Act is due for a review and make over to bring it up to date. Beatson said directors of incorporated societies, non-profits and trusts, were also at risk. And the rise of class action litigation funding, as seen in the current high-profile action against ANZ and ASB , presented another legal risk, regardless of the merits of the case. Beatson said the risks and uncertainty have resulted in directors loading themselves with more liability insurance, with about 95 percent of board directors covered. Such insurance paid the bulk of the penalties imposed on the Mainzeal directors after the company's collapse. The list of risks is also growing - ranging from decisions about trading and insolvency, responsibility for managing and assessing climate risks, natural disasters, and now artificial intelligence and whether boards have put in sufficient safeguards and human oversight. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Bloomberg
3 days ago
- Business
- Bloomberg
Korea Presidential Aide Pushes for Gradual Corporate Stock Plan
The South Korean president's push to cancel listed companies' treasury stock purchases will strengthen corporate governance but should be phased in to prevent market disruption, a senior aide said. The proposal is part of a broader set of initiatives by President Lee Jae Myung — backed by lawmakers in his Democratic Party, which holds a legislative majority — to bolster the local stock market they view as undervalued compared to regional peers.
Yahoo
3 days ago
- Business
- Yahoo
Wise co-founder seeks talks with proxy advisers in US listing row
A co-founder of Wise wants the world's most influential corporate voting advisory firms to change their judgements on plans that would cement control of the money-transfer service in the hands of a small band of investors for another decade. Sky News has learnt that Taavet Hinrikus, who alongside current chief executive Kristo Kaarmann launched the company in 2011, is to press Glass Lewis and Institutional Shareholder Services (ISS) - whose recommendations carry significant sway among institutional investors - to advise Wise's shareholders to oppose plans to extend its dual-class shares until 2036. The row has arisen amid plans for Wise to shift its primary listing to New York, where dual-class ownership structures are far more common. Money latest: The structure was put in place in 2021, when Wise floated in London with a pledge that it would revert to a single class of shares five years after its stock market debut. Mr Hinrikus's ownership vehicle - Skaala Investments - holds just over 5.1% of Wise's shares, a stake worth roughly £450m at the current stock price. As a result of its ownership of Class B shares, Skaala also holds roughly 11% of Wise's voting rights. Speaking exclusively to Sky News, Mr Hinrikus said he was "disappointed that neither Glass Lewis nor ISS have flagged this important governance issue". "We are keen to discuss this with them and for them to revise their reports ahead of the vote." Mr Hinrikus has been angered by Wise's refusal to separate the questions of the US listing and the dual-class voting structure into distinct resolutions at its forthcoming general meeting to approve the move. In a statement issued more widely on Monday, Skaala said "this material governance change was not clearly disclosed to Wise's share owners". Read more from Sky News: It was unclear which other shareholders in Wise were unhappy at the company's approach. Wise said: "The dual-class share structure is essential to ensuring our continued successful performance."
Sky News
3 days ago
- Business
- Sky News
Wise co-founder seeks talks with proxy advisers in US listing row
A co-founder of Wise wants the world's most influential corporate voting advisory firms to change their judgements on plans that would cement control of the money-transfer service in the hands of a small band of investors for another decade. Sky News has learnt that Taavet Hinrikus, who alongside current chief executive Kristo Kaarmann launched the company in 2011, is to press Glass Lewis and Institutional Shareholder Services (ISS) - whose recommendations carry significant sway among institutional investors - to advise Wise's shareholders to oppose plans to extend its dual-class shares until 2036. The row has arisen amid plans for Wise to shift its primary listing to New York, where dual-class ownership structures are far more common. The structure was put in place in 2021, when Wise floated in London with a pledge that it would revert to a single class of shares five years after its stock market debut. Mr Hinrikus's ownership vehicle - Skaala Investments - holds just over 5.1% of Wise's shares, a stake worth roughly £450m at the current stock price. As a result of its ownership of Class B shares, Skaala also holds roughly 11% of Wise's voting rights. Speaking exclusively to Sky News, Mr Hinrikus said he was "disappointed that neither Glass Lewis nor ISS have flagged this important governance issue". "We are keen to discuss this with them and for them to revise their reports ahead of the vote." Mr Hinrikus has been angered by Wise's refusal to separate the questions of the US listing and the dual-class voting structure into distinct resolutions at its forthcoming general meeting to approve the move. In a statement issued more widely on Monday, Skaala said "this material governance change was not clearly disclosed to Wise's share owners". It was unclear which other shareholders in Wise were unhappy at the company's approach.
Sky News
3 days ago
- Business
- Sky News
Wise co-founder seeks talks with proxy advisors in US listing row
A co-founder of Wise wants the world's most influential corporate voting advisory firms to change their judgements on plans that would cement control of the money-transfer service in the hands of a small band of investors for another decade. Sky News has learnt that Taavet Hinrikus, who alongside current chief executive Kristo Kaarmann launched the company in 2011, is to press Glass Lewis and Institutional Shareholder Services (ISS) - whose recommendations carry significant sway among institutional investors - to advise Wise's shareholders to oppose plans to extend its dual-class shares until 2036. The row has arisen amid plans for Wise to shift its primary listing to New York, where dual-class ownership structures are far more common. The structure was put in place in 2021, when Wise floated in London with a pledge that it would revert to a single class of shares five years after its stock market debut. Mr Hinrikus's ownership vehicle - Skaala Investments - holds just over 5.1% of Wise's shares, a stake worth roughly £450m at the current stock price. As a result of its ownership of Class B shares, Skaala also holds roughly 11% of Wise's voting rights. Speaking exclusively to Sky News, Taavet Hinrikus said he was "disappointed that neither Glass Lewis nor ISS have flagged this important governance issue". "We are keen to discuss this with them and for them to revise their reports ahead of the vote." Mr Hinrikus has been angered by Wise's refusal to separate the questions of the US listing and the dual-class voting structure into distinct resolutions at its forthcoming general meeting to approve the move. In a statement issued more widely on Monday, Skaala said "this material governance change was not clearly disclosed to Wise's share owners". It was unclear which other shareholders in Wise were unhappy at the company's approach.
