Institutional investors have done such a good job at changing their behaviour that the time has come to have a look at what the Government is doing to encourage shareholders to act as long-term owners of companies. It could bring about a lot of change with just one, relatively simple, move.

The UK Government has devoted some energy over the past 18 months to focusing on fund managers and their institutional clients, the pension schemes and insurance companies. Mainly in the shape of Lord Myners, Financial Services Secretary to the Treasury, it has been exhorting them to engage with company managers and think carefully about their votes at company meetings.