3.5.0 Introduction

This section examines two phenomena that have recently captured the attention of the SEC and policymakers around the world: voting without a corresponding economic interest ("empty voting") and the major influence of proxy advisers such as ISS. By using the taxonomy of mechanisms of voting efficiency as a framework for analysis, we can put the costs and benefits of these phenomena into sharper focus. This, in turn, enables the formulation of various policy options aimed at mitigating the costs while fostering the benefits.