Discuss the role of Proxy Advisors in ensuring Good Corporate Governance.

Proxy advisory firms are independent research outfits that evaluate the pros and cons of corporate matters such as mergers, acquisitions, top appointments and CEO pay, which shareholders are expected to vote on in AGMS, EGMs or court-convened meetings. These firms engage in heavy duty analysis of the major actions that are put to vote, and produce detailed reports advising shareholders on how they should swing to safeguard their interest. Proxy advisers can be valuable because they fill an information gap: institutional investor's contract with these firms to carry out comprehensive reviews of voting proposals that the investors themselves have neither the time nor the resources to undertake. In short, many institutional investors, including pension funds and mutual funds, review and perhaps follow proxy advisers' recommendations when voting their shares. Over the years, proxy services firms have played an increasingly outsized role in imposing their views of appropriate corporate governance on corporations and their shareholders. These firms purport to evaluate every issue for which corporate proxies are solicited, and their recommendations are demonstrably influential in how proxy votes are cast. Proxy advisers also influence boards' decision making. They do a good job of policing the boards and governance records of the firms they track, and nudging institutional investors to take a stand on governance issues.