INTERVIEW: US’s Oxley on corporate governance

Congressman Michael Oxley

US congressman Michael Oxley, co-author of the US Sarbanes-Oxley corporate governance legislation, says institutional investors are “finding their voice” in corporate governance.

Oxley, co-author of the 2002 act which was passed in the wake of financial scandals like Enron, said: “They have enormous influence and I think they are finding their voices that here to fore have not been so strong.

“They are being much more assertive with the boards and although they cannot expect to get everything they want, they have enormous abilities to influence decisions.”

Demand for corporate governance standards is high in Europe as well. “The European investor, in particular the institutional investor, expects certain standards to be met with or without legislation, and I think it an absolutely positive thing.”

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