Discuss, in brief, the actions the institutional investors in a listed company may take under the UK Stewardship Code if they are dissatisfied with the board's response to their concerns on the performance of the company

The UK Stewardship Code sets out the principles of effective stewardship by investors. Stewardship responsibilities of institutional investors may include monitoring and engaging with companies on matters such as strategy, performance, risk, capital structure and corporate governance, including culture and remuneration. The Stewardship Code also states that institutional shareholders should: Publicly disclose their policy on how they will discharge their stewardship responsibilities. Have a robust policy on managing conflicts of interest in relation to stewardship which should be publicly disclosed. Monitor their investee companies. Establish clear guidelines on when and how they will escalate their stewardship activities. Be willing to act collectively with other investors where appropriate. Have a clear policy on voting and disclosure of voting activity. Report periodically on their stewardship and voting activities. Institutional investors should have clear guidelines about the circumstances when they will intervene actively. Compliance with the code does not constitute an invitation to manage the affairs of a company. If the company's board does not respond constructively, the institutional investor should have guidelines for deciding whether and how to escalate their action. For example, an institutional investor may ask for a meeting with the company chairman, or find out whether other institutional shareholders share the same concerns so that joint action can be considered. Institutional investors should endeavour to identify at an early stage issues that may result in a significant loss in investment value. If they have concerns, they should seek to ensure that the appropriate members of the investee company's board or management are made aware.