Author Archives: Harvard Law School Forum on Corporate Governance and Financial Regulation

Four ESG Myths About Emerging-Market Corporates

As one of the fastest-growing bond sectors, emerging-market (EM) corporate debt has become too big to ignore. With US$2.7 trillion outstanding across more than 600 companies, it’s now larger than the entire EM sovereign sector and is equal to the US-dollar and euro high-yield markets combined. For bond investors who’ve had a tough time finding […]

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New Rules for Mandatory Trading Suspension of US-Listed Chinese Companies

On December 2, 2021, the US Securities and Exchange Commission (SEC) issued new rules which further implement requirements and clarified the timing related to the potential mandatory trading suspension of Chinese companies listed on US stock exchanges beginning in 2024. The SEC’s new rules were adopted pursuant to the Holding Foreign Companies Accountable Act, enacted […]

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Vanguard’s Expectations for Companies with Significant Coal Exposure

Vanguard has explained its concerns about climate change and the financial risk it presents to long- term investors. We have outlined expectations for companies where climate change is a material risk: They should have climate-competent boards, robust climate risk oversight and mitigation measures, and effective climate risk disclosure. In this post, we focus on the […]

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Insider Giving

Would any of us refuse a gift? We typically do not, unless of course the gift resembles a Trojan Horse. In this blog, we hope to convince you that even if you do not refuse it, you should treat a gift from insiders with upmost care. The problem is that previous studies have shown that […]

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Weekly Roundup: December 31, 2021–January 6, 2022

Proxy Advisors Update Voting Guidelines for 2022 Posted by David Bell, Dean Kristy, and Ron Llewellyn, Fenwick & West LLP, on Friday, December 31, 2021 Tags: Board composition, Boards of Directors, Climate change, Diversity, ESG, Glass Lewis, Institutional Shareholder Services Inc., Proxy advisors, Proxy voting, Say on climate, Shareholder voting, SPACs SEC’s Focus on Advisory Fees—Implications for Private Fund Managers Posted by Brian T. Daly, Jason M. Daniel, and […]

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The Mainstreaming of ESG Investing Through Policymaking

ESG, Sustainable Finance, Green Investments—some of the biggest buzz words in finance the last years. What used to be a niche topic has now taken centre stage. Investors’ almost insatiable appetite and legislative innovation will keep it there for quite some time to come. Staying on top of local developments is not enough, reading the […]

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Interested Voting

Despite the ever-growing influence of institutional investors and shareholders generally in corporate governance, interested voting is not fully explored. While corporate law is indisputably attentive to transactions with a controlling shareholder, such transactions hardly cover all instances in which an interested shareholder may harm the corporation by casting a pivotal vote determining the outcome of […]

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ISS Releases Benchmark Policy Updates for 2022

This week, ISS issued its benchmark policy updates for 2022. The policy changes will apply to shareholder meetings held on or after February 1, 2022. The key changes for U.S. companies relate to say-on-climate proposals, board diversity, board accountability for climate disclosure by high GHG emitters, board accountability for unequal voting rights and shareholder proposals […]

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Enforcement Again Brings Charges for Failure to Disclose Perks

Failure to disclose executive perks continues to be a flashing target for SEC Enforcement. Just last year, there were two actions against companies for disclosure failures regarding perks—Hilton Worldwide Holdings Inc. (see this PubCo post) and Argo Group International Holdings, Ltd. (see this PubCo post). And earlier this year, Enforcement brought settled charges against Gulfport […]

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Board Responsibility for Artificial Intelligence Oversight

Artificial Intelligence (AI) is quickly taking over. But not in the robot-coup type of scenario that inspires multimillion dollar box office hits. Rather, AI protects our credit cards from fraudulent activity, helps employers to hire and maintain a remote workforce during a global pandemic, and enables doctors to deliver care to patients thousands of miles […]

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