Does Politics have to get involved in Governance?

We have repeatedly pointed out the double conflict of interest that restrains institutional fund managers from taking a more active role in reigning in abuses in listed companies. The Institutions are themselves often the beneficiaries of lax oversight (in case they work for listed fund management companies) and also have to tread carefully in order not to be cut off from profitable business by the managements of companies they do - or try to do - business with. Real progress in corporate governance will only be possible if the ultimate share owners - the public - is effectively organised and represented. The longer the representatives of the fund management industry drag their feet over this issue, the more likely will it be that politicians will have to be involved.