Institutional Shareholders And Corporate Governance: Do Institutional Shareholders Have An Active Participation In Preventive Governance In The United Kingdom? And If So, How?

Resumen

In this paper the author examines the approach of institutional shareholders
to Corporate Governance in the United Kingdom, in particular the issue of preventive
governance according to the Combined Code of United Kingdom. Corporate Governance
has been developed to solve the agency dilemma that exists in modern corporations.
Plenty of legislation has been issued around the world to prevent the scandals of the past;
however business needs flexible principles for reasons of efficiency. An important role is
played by institutional shareholders. The main thesis of this paper is that preventive
governance is the best way to solve the agency dilemma and institutional shareholders
have learned the importance of it.