The relationship between boards and investors should not be “combative”, according to the head of a leading asset managers group.

Jen Sissons, recently appointed chief executive of the International Corporate Governance Network (ICGN), made the remark at the organisation’s annual conference in London.

Reflecting on the need for “long-term sustainable economic returns” from business, Sissons argued boards and investors should be focused on the same aims.

“Investors, boards and management teams should all basically be seeking the same thing.

“Investors want to invest in successful, thriving companies, to make good returns for our beneficiaries and to do that in a way that allows us to keep those returns coming in a sustainable way, as we look to the future. Management and boards should want their companies to be successful over the long-term, too.”

She added: “This shouldn’t be combative; this should be constructive. We need to have open, honest dialogue and we need to advocate for good governance. We need to find ways to work together as investors and companies to achieve the best outcomes.”

‘Enormous societal benefits’

And in a nod to ICGN’s recent criticism of listing reforms, Sissons said: “Thriving capital markets with good shareholder rights have enormous societal benefits, they help to provide capital to business and to generate returns that allow people to create wealth and provide for their futures.”

The Financial Conduct Authority last week announced rule changes that would remove the need for sunset clauses on dual-class shares and do away with a requirement for shareholder votes on significant transactions. Sissons has previously slammed the rule changes for “pitting” management against shareholder, disadvantaging ordinary shareholders.

Sissons’ speech also reflects a view in the City that tensions have grown between boards and investors. The Investor Forum, a body created to host dialogue between boards and investors, said the tensions were exacerbated by increased reporting responsibilities and pressure on boards to help “address complex societal and environmental issues”.

There is also a view among some that governance requirements on UK listed companies have been growing to an unjustified degree. A lobby group, the Capital Markets Industry Taskforce (CMIT), led by London Stock Exchange chief executive Julia Hoggett, has had some success in blocking new reporting requirements as part of its campaign to “reset” governance.

Sissons said this week that ICGN’s priorities for the coming year would be strong and effective boards (including a host of issues from strategy to internal controls and risk management, culture and governance); protecting shareholder rights (with a further attention on share classes and the application of voting rights); reliable corporate reporting (with a focus on sustainability reporting) and best practice in investor stewardship.