Do hedge funds threaten corporate governance models?
The size of the hedge fund business, as well as the role it plays in company financing, makes hedge funds more visible. They have become more active investors in corporate equity and active shareholders of the companies in which they invest. There is some pressure for institutional investors at least to be subject to greater transparency and to be obliged to disclose their voting policies (possible legislation is being discussed in a few Member States). This issue is part of the Commissions current consultation on its Action Plan on Company Law and Corporate Governance, which dates from 2003. A decision will be taken in the light of the results of the consultation. There is, however, no justification in principle for distinguishing between different types of institutional investors, i.e. between hedge funds and pension funds or others financial institutions.
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