Shareholder Activism on the Rise in India
Shareholders in India are gradually becoming more activist and and not rubber stamping management decisions and actions.
Economic Times reports that after remaining passive and benign for years, shareholders, institutions and mutual funds are now aggressively challenging company managements and voting against many resolutions.
Institutional shareholders have opposed and voted against resolutions in 18 out of 58 annual general meetings (AGMs) of leading companies so far this year. They voted against resolutions of only 9 out of 65 companies last year, according to data from proxy advisor firm Stakeholder Empowerment Services (SES).
Only the instances where institutional votes against resolutions accounted for over 20 per cent of the company shareholding were considered for this study. Gentle nudges by regulators and e-voting are among the factors responsible for this change in attitude.