Ann Crotty Writer-at-large

Auditor rotation, flawed remuneration policies and director independence continue to be the corporate governance issues most likely to incur the ire of the Public Investment Corporation (PIC), which voted against 11.5% of the resolutions put to it at shareholder meetings held during the nine months to end-December 2017. The PIC’s recently released voting record reveals that the rate at which the PIC, the single most powerful investor on the JSE, is voting against resolutions has increased significantly. In the 12 months to end-March 2017 the PIC voted against just 8.9% of resolutions presented at shareholder meetings. However, despite its clout the PIC’s voting seems unable to change the corporate behaviour it has targeted. Voting against the re-appointment of auditors that have served for more than 10 years is the reason for the increase in "no" votes.

Barclays Africa, Standard Bank and Nedbank, which are all required to have two external auditors, were particularly affected ...

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