The following shareholder concerns will be the primary area of focus for ASA company monitors on
behalf of ASA members and shareholders in 2010.

Performance

The financial performance of companies is a fundamental focus of ASA Company Monitoring. It is part of the ASA's responsibility to members to hold both the board and management accountable for the current and future performance of the company.

During 2010 the ASA will have a particular focus on companies that are not exhibiting signs of recovery and asking directors and management to account for continuing poor performance.

Remuneration

The ASA adopted a new policy on the remuneration of executives in 2009. The Policy Statement, Executive Remuneration has been widely circulated. Monitored companies have been provided with a copy of the policy and placed on notice that it will apply to remuneration reports in 2010.

The policy continues the ASA's long-held focus on the alignment of executive remuneration, particularly through incentive schemes, with the experience of shareholders. In 2010 the ASA will be assessing the steps companies have taken to develop incentive schemes that encourage both longer horizons and a focus on enduring earnings. Those steps should include; lengthening performance periods to at least four years and holding a meaningful proportion of a CEO's vested incentives for a further period beyond the vesting date.

Capital management

As the world economy emerges from the financial crisis the ASA will be focussing on whether companies are making prudent capital management decisions. In particular, the ASA will be looking for appropriate ratios of debt to equity funding and a renewed focus on the payment of dividends to shareholders.

Reporting to shareholders

Communication with shareholders should be open, clear, precise and informative and should not mislead shareholders either directly, indirectly or by obfuscation.

In 2010 the ASA will be focussing on reporting to shareholders, particularly looking for; the use of plain English, explanations of technical terms and the reconciliation of any non-statutory financial information with the financial statements.

Although the forecasting of future performance is not a statutory requirement, it is frequently provided by companies and relied upon by shareholders. The ASA will be assessing the detail and accuracy of disclosures relied on in the forecasting of revenue, profit and distributions.

Board composition

A well-balanced board, made up of appropriately qualified and experienced individuals, is the foundation of good corporate governance.

In 2010, the ASA will be asking boards of monitored companies how they are addressing issues of diversity, independence, gender, selection and succession. The ASA will also be focussing on the composition and functioning of committees.

Communication with shareholders

Rapid developments in technology have allowed listed companies to communicate more effectively, cheaply and quickly with shareholders.

In 2010 the ASA will be assessing the shareholder communications of monitored companies. Of special interest will be the convenience and utility of electronic proxy voting and electronic disclosure documents (including online reports) and the effectiveness of shareholder reviews in communicating an accurate and complete view of company performance.