ABSTRACT
Stakeholders—clients, beneficiaries, trade unions, non-governmental organisations—have actively encouraged investors to take a more activist approach to their investments. The motivations include both the potential financial benefits and the desire to address the specific concerns or values of the organisation or the individual concerned. Shareholder activism occurs when shareholders use their unique power as the owners of companies to facilitate change. The starting point in many discussions around shareholder activism has been the importance of using the formal rights associated with owning shares, in particular the right to vote on resolutions at annual general meetings. In situations where investors decide to intervene with companies, there is a range of strategies that can be used. The specific strategies depend on factors such as the specific issue in question, the relationship between the investor and the company, the support from other investors and the relationship between the issue and financial performance.
