The complaint against proxy advisory firms is that they have too much power. Thus proxy advisory firms’ recommendations help in maintaining good corporate governance and also they help the companies to comply with the provisions of law. “Regulation of proxy advisory firms does not mean that one can regulate the way they make recommendations,” said Shriram Subramanian, founder and MD, InGovern Research. Proxy advisory firms provide a valuable service in helping investors make wise choices about their shareholder votes. Two firms, Glass Lewis and Institutional Shareholder Services, make up the entire industry. Under the Commission interpretation, proxy voting advice provided by proxy advisory firms generally constitutes a solicitation subject to the federal proxy rules. In addition, by nature of their industry, proxy advisors are experts in governance, and their recommendations often set the stage for best practices for good governance. We Relish Helping Our Clients WIN in the Face of “Against” Recommendations! The proxy advisory space is effectively a duopoly, with two firms, ISS and Glass Lewis, controlling 97 percent of the market. Indian proxy advisory firms are regulated by SEBI, but foreign advisory firms are not regulated in India. Many of them find that proxy firms can help them even when they aren’t having any issues. Without clear regulatory oversight, they have become quasi-regulators and de-facto … Many mid-cap and small-cap corporations call in the proxy advisory firms only for consultation and voting at their annual meetings. 6) Consider the following statements with respect to Proxy advisory firms. Proxy advisory firms will research and dig out information about the company and advise institutional investors to exercise their rights in the company. We … Proxy advisory firms would not be required to revise their report in response to comments from issuers and other proxy soliciting persons, but will need to consider whether to do so in light of the requirement that there be no material misstatements or omissions in their solicitations. Hiring a proxy advisory firm provides mid-cap and small-cap companies with research and analysis at a much lower cost. We Operate as a High-End Corporate Proxy Advisory/Solicitation Firm. Proxy advisory firms, lawyers: ICICI board needs to look into ethics, conflict of interest MK Sharma, the bank’s chairman, admitted that Chanda Kochhar, was part of the credit committee which sanctioned the loan but did not recuse herself from the committee. Proxy advisory firms will research and dig out information about the company and advise institutional investors to exercise their rights in the company. We Possess Extensive Experience with Proxy Contests and Shareholder Activism. The code of conduct will involve a ‘comply or explain’ approach wherein listed companies aggrieved by the view of proxy advisors can approach the SEBI for redressal. We View Compensation Related Proxy Proposals as our Special Forte.