Woodsford’s CEO, Steven Friel discusses the role of Litigation as a critical tool in Investor Stewardship at the Varieties of Investor Stewardship Conference
The third Investor Stewardship Conference organised by the King’s Global Investor Stewardship Research Group witnessed active partnership from experts and academics alike who came together to discuss the current and future directions of investor stewardship.
Our CEO, Steven Friel, spoke on the panel that discussed the ‘Varieties of Strategies in Investor Stewardship’. He was joined by Eva Micheler, Professor of Law at The London School of Economics and Political Science (LSE) who moderated the session and speakers – Gavin Grant, Head of Governance at Baillie Gifford, David Trenchard, Founder & CEO at David Trenchard Consulting Ltd, and Lewis Johnston, Director of Policy at ShareAction. Steven emphasised litigation as a critical tool in investor stewardship, explaining how Woodsford helps institutional investors organise and engage with companies facing major governance and ESG breakdowns, potentially leading to legal action.
He outlined three key levers of control for institutional investors. The first is the decision to invest or divest, allowing investors to express satisfaction or dissatisfaction with a company’s strategy. The second lever involves regular engagement through activities like AGMs, shareholder resolutions, and dialogue with management. The third, which Steven emphasised, is escalated collective engagement, including intensive measures like collective shareholder engagement and litigation. This approach becomes necessary in cases of severe corporate governance and ESG failures, where holding companies accountable requires robust action.
Steven highlights the effectiveness of litigation as a legitimate tool. He argued that when used constructively, litigation prompts companies to address failures and take corrective action, offering an opportunity for improvement rather than being seen as a mere nuisance.
You can read the conference report here.
For further updates regarding Woodsford’s collective redress, escalated engagement and investor stewardship activities, tune in to our Engage Quarterly Newsletter and follow us on LinkedIn.
