The Investment Management Association is to develop an investor engagement forum as set out in the Kay Review and has invited all institutional investors and shareholders.
The forum will provide investors who may hold small stakes individually a larger voice for change at companies where concerns have not been addressed, according to the IMA.
The asset manager trade body says it will also enable investors to co-ordinate action where concerns are identified.
IMA chief executive-designate Daniel Godfrey says: “In the Kay Review of UK equity markets and long-term decision making, professor Kay called for the establishment of a new Investor Forum.
“Whilst it is always the right of an investor to sell shares, for those who choose or who have to hold shares, high quality engagement can play a role in better outcomes. In turn, principled collective action could be effective when engagement fails.”
He adds: “Any collective mechanism will need to be available to all institutional investors and shareholders. The wider its reach, the stronger its voice.”