Chapter 3 sets out policy and good practice recommendations and annotations for policy-makers and regulators (in bold) and for the private sector (in italics) across 11 sub-topics: 1) Encouraging more active involvement of institutional investors (IIs); 2) Distinguishing better governed companies for investment purposes; 3) Formalizing and disclosing II policies related to corporate governance of investee companies; 4) Exercising ownership rights in portfolio companies; 5) Voting at general meetings of shareholders; 6) Encouraging communication between IIs and investee companies; 7) Encouraging communication among various IIs; 8) Improving the functioning of boards of directors; 9) Strengthening the accountability of management; and 10) Addressing II internal corporate governance issues; 11) Exiting from the investment.