The Pensions and Lifetime Savings Association has published an updated edition of its Corporate Governance Policy and Voting Guidelines.

The guidelines aim to promote the long-term success of the companies in which its members invest and ensure that the board and management of these companies are held accountable to shareholders, such as pension funds.

Luke Hildyard, policy lead for stewardship and corporate governance for the PLSA said its pension fund members have a clear interest in promoting the long-term interests of the companies in which they invest.

"It is an essential part of our role to represent these interests to maximise the long-term returns of our members' assets, irrespective of the potential for short-term discomfort.

"We develop the policy and guidelines through consultation with our members and the changes to this year's edition reflect both our recent work and our intention to advance market best practice."

Changes to this year's policy and guidelines includes reporting on strategic risk.

Earlier in the year the PLSA examined how corporate reporting should enable an investor to understand how a company is maximising the long-term value of the human capital at its disposal – and equally importantly set out the board's view of the associated strategic and operating risks.

It says the composition of the workforce and the sustainability of the employment model warrant further transparency in corporate reporting to allow shareholders to gain a comprehensive view of the risks and opportunities present within the company.

The new policy and guidelines also state that directors should have sufficient time to fulfil their role properly, saying the non-executive role is an increasingly demanding one, particularly when chairing a key committee, and is essential to the effective governance of the company.

This year's policy and guidelines include a note that shareholders should be mindful of concurrent directorships and their respective call upon an individuals' time.

First published 17.12.2015

Lindsay.sharman@wilmingotnplc.com