ZURICH (Reuters) - A shareholder push to change the statutes of Swiss insurer Baloise has gathered more support as proxy adviser Institutional Shareholder Services (ISS) threw its weight behind the plan after its peer Glass Lewis also backed the initiative.
Baloise investor zCapital is seeking to change rules that set a 2% ceiling on voting rights at the firm, arguing the amendment would make the Swiss group more attractive. Shareholders can vote on zCapital's proposal on April 26.
In a report seen by Reuters on Tuesday, ISS said it backed the principle of "one share, one vote," after Glass Lewis said a day earlier it was supporting the zCapital proposal. ISS did not immediately respond to a request for comment on the report.
Baloise shareholders have no more than 2% of votes, irrespective of the size of their stake, meaning that major investors like BlackRock (NYSE:BLK) or UBS cannot fully bring their weight to bear on decision-making.
The Baloise board has recommended rejecting the proposal, arguing that lifting curbs on voting rights was not in the long-term interests of the firm and most shareholders. A company spokesperson said it took note of ISS's recommendation.
Curbs on voting rights can be used to protect companies from unwanted takeover attempts.
Basel-based Baloise wants to submit its own proposals in 2025 to alter restrictions on voting rights.