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CIS claims victory as Stelios flies out

CIS is claiming the resignation of Easyjet chairman Stelios Haji-Ioannou as a victory for shareholder activism, saying it shows pension trustee legislation is unnecessary.

Following the Myners rep-ort, the Government has suggested that pension trustees as well as fund managers should be legally bound to intervene in the running of companies they invest in.

Haji-Ioannou stepped down as chairman of Easyjet last week after shareholder CIS voiced concerns over the lack of independent non-executive directors on the board.

It wants the Government to take note of the events in the Easyjet boardroom to realise that providers and institutional investors can bring about corporate change. CIS says the aims of the Government to make trustees and fund managers more active in their investments can be achieved without further legislation.

Rather than making shareholder activism a legal duty for trustees, CIS believes that a set of best practice guidelines drawn up by the industry is enough.

General manager (marketing) Martin Clarke says: “The Myners&#39 consultations have raised the whole issue of shareholder activism in pension fund management and brought the role of the trustee to the forefront. The moves taken by Easyjet after intervention by CIS show new legislation is not needed for shareholder acti-vism to be effective.”

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