Shareholder activism

    ESG & Governance

    Shareholders using their rights to push a company to change its strategy, governance or management.

    Activism ranges from private talks with management to voting against resolutions, requisitioning a general meeting, public campaigns and legal action. Shareholders holding 10% of the voting capital can ask the board to call a meeting. Activism is less common in India than in the US because many companies have controlling promoters, but it matters where promoter holding is low, as in the case of Zee Entertainment.

    Related terms