More clout for shareholders?

Should shareholders have a greater say in corporate governance? What key matters should require shareholder approval?

There are two sides to the question of corporate governance. On the one hand, the greater the freedom to act in the best interests of the company and its stakeholders, the more likely it is that management and board will behave in a way that fulfils the trust they have been given. But some will not, there are crooks in many places. On the other hand, the greater the regulation and control imposed by well-intentioned protective systems, the more likely it is that management and board will devote time to getting round the regulations, to the benefit of themselves ahead of the company. Transparency goes a long way to avoiding these pitfalls and a small group of shareholders, elected by the whole body of shareholders, should be allowed to ask any question in confidence and expect to have it answered. Minority shareholders should be strongly represented in this Trustee Shareholder Group.