Excellence in administration

  • ISSA Guidelines:
  • Investment of Social Security Funds

Excellence in administration

  • ISSA Guidelines:
  • Investment of Social Security Funds

Investment of Social Security Funds -
Guideline 28. Direct investment and representation on the board of companies

Where appropriate and permitted by the board, the investing institution may take a direct equity or ownership stake in a publicly quoted, private or state-owned enterprise.

Such an investment may confer voting rights and permit the institution to influence directly certain activities of the organization in which it has taken part or, when there is full ownership, include representation on the board of a company or organization.

In such a situation, the board of the social security institution ensures that its representatives on the boards of companies represent the interests of the social security institution. To avoid potential conflicts of interest, an a priori alignment and compatibility between the social security institution’s objectives and the corporate objectives of the company is put in place.