BCI Responsible Investing Newsletter

BCI Responsible Investing Newsletter - October 2016

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7 bcIMC RESPONSIBLE INVESTING NEWSLETTER Applying Best Practices As we hold seats on the boards of our companies, bcIMC takes an active role in managing our investments. Active asset management is critical to sustaining investment returns. We encourage our portfolio companies to focus on long- term value creation. We do so by being engaged owners interacting with companies to oversee business strategy and design effective executive compensation programs that reward value-add performance. We expect our board representatives to ensure alignment of long-term interests with that of a company to encourage value creation over time. We also take steps to enhance our knowledge and skills against world-class standards. When we interact with companies we refer to international standards and frameworks including the G20/OECD Principles of Corporate Governance. Members of our team have undergone director training with the Institute of Corporate Directors, a globally recognized director organization based in Toronto. bcIMC expects external managers and portfolio companies to adopt best practices as outlined in our responsible investing guidelines. G20/OECD Principle VI Board members should act on a fully informed basis, in good faith, with due diligence and care, and in the best interest of the company and the shareholders. Where board decisions may affect different shareholder groups differently, the board should treat all shareholders fairly. T h e b o a r d s h o u l d a p p l y h i g h e t h i c a l standards. It should take into account the interests of stakeholders. T h e b o a r d s h o u l d f u l f i l c e r t a i n k e y functions, including: Reviewing and guiding corporate strategy, major plans of action, risk management policies and procedures, annual budgets and business plans; setting p e r f o r m a n c e o b j e c t i v e s ; m o n i t o r i n g implementation and corporate performance; and overseeing major capital expenditures, acquisitions and divestitures. The board should be able to exercise objective independent judgement on corporate affairs. In order to fulfil their responsibilities, board members should have access to accurate, relevant and timely information. When employee representation on the board is mandated, mechanisms should be developed to facilitate access to information and training for employee representatives, so that this representation is exercised effectively and best contributes to the enhancement of board skills, information and independence. A. B. C. D. E. F. G.

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