3.2.2 Shareholder Activism

Shareholder Activism

Shareholder activism refers to the efforts of shareholders to influence a company's management and operations. Activists may include institutional investors, individual shareholders, or groups with specific agendas. Common forms of shareholder activism include:

  • Proxy Voting: Activists may use their voting rights to influence board elections or other key decisions. They may propose alternative candidates for the board or specific resolutions for consideration at shareholder meetings.

  • Public Campaigns: Activists may launch public campaigns to pressure the company into adopting certain policies or practices. This can include media coverage, public statements, or direct engagement with other shareholders.

  • Litigation: In some cases, shareholders may resort to legal action to address grievances or enforce their rights. This can include lawsuits related to breaches of fiduciary duty or other governance issues.

Shareholder activism can be a powerful force for change, promoting accountability and ensuring that management acts in the best interests of the shareholders. However, it can also be disruptive and may create conflicts within the company.


Last modified: Sunday, 20 October 2024, 8:35 AM