This 2005 paper offers a series of measures that should be implemented by lending institutions to enable securities lending to be in line with good corporate governance. These recommendations include:

• Transparency - All stakeholders, not just securities lending professionals, e.g. fund managers and corporate governance professionals, should have a thorough working knowledge of the overall framework necessary to combine good corporate governance with a successful securities lending programme.



• Consistency - A clear policy is required so that any perceived economic conflict between the securities lending income forgone and the "value" of recalling to vote is addressed explicitly.



• Information - All stakeholders should have access to the necessary information in time to make informed decisions.



• Timing - Issuers might consider the scheduling of the dividend timetable and the possibility of further separating the record date from the AGM. This would allow lenders to participate in dividend-related lending activity with less voting conflict.