Tag Archives | auditor

Egan-Jones Updates Voting Guidelines

Egan-JonesI have been using Egan-Jones Proxy Services (“EJPS”) for several months to help me decide how to vote my proxies and have come to value their advice. For example, I like their policy of withholding votes from the entire compensation committee when voting against say on pay.

Recently Egan-Jones announced the implementation of changes to their proxy voting guidelines for the 2017 Proxy Season. I like the direction they are going. Continue Reading →

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Impax Laboratories Inc (IPXL) Proxy Score 45

Impax LaboratoriesImpax Laboratories Inc (NASD:IPXL) is engaged in the development, manufacture and marketing of bioequivalent pharmaceutical products (generics), in addition to the development and marketing of branded products. It is one of the stocks in my portfolio. Their annual meeting is coming up on 5/12/2015. ProxyDemocracy.org had the votes of one fund when I checked and voted on 5/6/2015. I also obtained the votes of CalSTRS, voted with management 45% of the time and assigned Impax Laboratories a proxy score of 45.

View Proxy Statement. Read Warnings below. What follows are my recommendations on how to vote the Impax Laboratories 2015 proxy in order to enhance corporate governance and long-term value. Continue Reading →

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FRC Recommends Shareowner Involvement in Choice of Auditor

The Financial Reporting Council, the UK financial reporting watchdog, wants shareholders to have more say in choosing the firms which audit corporate accounts.

The suggestion is among a raft of ideas the FRC is putting forward for debate in a bid to improve corporate reporting in the wake of the financial crisis. The FRC argues annual reports have become too cluttered, reducing their value for investors.

“There should be greater investor involvement in the process by which auditors are appointed,” the FRC said.

“We recognise that although shareholders confirm auditor appointments, management is perceived to determine the appointment (or reappointment) and remuneration of auditors and that, therefore, auditor independence is compromised.

“There is a case for the independence of the decision to be reinforced by the Audit Committee seeking greater shareholder involvement.” The comments come in the new Effective Company Stewardship: Enhancing Corporate Reporting and Audit report

There are two options. Either company audit committees should be required to explain why they appointed the auditor, or they could discuss the appointment “with a number of principal investors”- and then report on that consultation to shareholders generally… Responsible Investor.

There is, of course, a third option. Shareowners could select the auditor from a group of qualified contenders. For more on that option, see Proxy Voting Brand Competition by Mark Latham.

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