The International Corporate Governance Network recently released a code of best practices for lending of securities. The Code addresses issues of transparency, consistency and responsibility. The ICGN argues that transactions secured by stock should be subject to the same expectations of transparency as other stock transactions. Regarding consistency, the Code attempts to guide lending agents in applying consistent principles to their decision-making processes. Finally, with respect to responsibility, the Code addresses the need for shareholders to assure that their shares are voted in a manner consistent with their interests.
The link to the Code is below: