Audit Committees on Investors’ Spotlight

The direct engagement of long-term investors with the Audit Committee from investee companies may reveal itself as the next step in the search for best practices and results. Such was the message on the first debate at ICGN’s Annual Conference, which happened in London, from June 3 to 5.
On one side, Ms. Natasha Landell-Mills, from Sarasin Partners, described the attempts (and failures) to start such a debate. Despite the entity’s importance to ensure the integrity of financial statements, the receptivity to give investors feedback remains very low.
At the same time, speakers who participated in committees from companies such as Vodafone, Ashmore, and Philips debated the how to assure a committee to actually work through its composition, independence, and diversity.
Much attention was given to recent examples, such as the fraud suspicions on Toshiba.
At the end of the debates, a doubt remains: the convenience of an engagement with the Audit Committee in a scenario where most of the Administrative Councils still have not opened themselves to such a possibility.