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A Matter of Voice: The Case for Abolishing the 30 percent Rule for Pension Fund Investments

Author

Listed:
  • Poonam Puri

    (York University)

Abstract

Pension fund managers have devised ways to effectively skirt the rule that limits them to acquiring no more than 30 percent of the shares eligible to vote for the directors of a corporation. It’s time for regulators to enforce the rule or eliminate it entirely, thereby giving pension funds a voice commensurate with their equity stake.

Suggested Citation

  • Poonam Puri, 2009. "A Matter of Voice: The Case for Abolishing the 30 percent Rule for Pension Fund Investments," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 283, February.
    • Handle: RePEc:cdh:commen:283
    as

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    File URL: https://www.cdhowe.org/public-policy-research/matter-voice-case-abolishing-30-percent-rule-pension-fund-investments
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    References listed on IDEAS

    as
    1. Miguel Cantillo., 1995. "The Rise and Fall of Bank Control in the United States: 1890-1920," Research Program in Finance Working Papers RPF-254-Rev, University of California at Berkeley.
    2. Monika Queisser, 1998. "Regulation and supervision of pension funds: Principles and practices," International Social Security Review, John Wiley & Sons, vol. 51(2), pages 39-55.
    3. William B.P. Robson, 2009. "Boomer Bulge: Dealing with the Stress of Demographic Change on Government Budgets in Canada," e-briefs 71, C.D. Howe Institute.
    4. Alexandre Laurin & Colin Busby & Benjamin Dachis, 2009. "Out on a Limb: Assessing the Fiscal Sustainability and Effectiveness of the 2009 Federal Budget," e-briefs 72, C.D. Howe Institute.
    5. Michael Parkin, 2009. "What is the Ideal Monetary Policy Regime? Improving the Bank of Canada's Inflation-targeting Program," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 279, January.
    6. Davis, E. Philip, 2002. "Prudent person rules or quantitative restrictions? The regulation of long-term institutional investors' portfolios," Journal of Pension Economics and Finance, Cambridge University Press, vol. 1(2), pages 157-191, July.
    7. Douglas Cumming & Grant Fleming & Armin Schwienbacher, 2005. "Liquidity Risk and Venture Capital Finance," Financial Management, Financial Management Association, vol. 34(4), Winter.
    8. Davis, E. Philip, 1998. "Pension Funds: Retirement-Income Security and Capital Markets: An International Perspective," OUP Catalogue, Oxford University Press, number 9780198293040.
    9. William B.P. Robson & Alexandre Laurin & Finn Poschmann, 2009. "Lasting Bang for the Stimulus Buck: Priorities for the 2009 Federal Budget," e-briefs 70, C.D. Howe Institute.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Canadian pension security; Canadian pension funds;

    JEL classification:

    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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