He said: “I would say the majority of companies in emerging markets have good corporate governance but it is maybe 20-25 per cent that creates the problem. Many family-controlled companies continue to think they have the right to do whatever they want, regardless of what impact it has on minorities, so we have to be vigilant, it is a continuing challenge.”
He said the group was able to overcome these difficulties as there was greater awareness of the situation, good research and more choices available.
Templeton executive vice-president for research in Poland Greg Konieczny said: “Shareholder activism among institutional investors is down significantly. Very often, when there are difficult decisions to make, they do not show up at shareholder meetings and they do not vote.”