What is it about?
Generally, corporate governance is all about structure and process of board. Small shareholders' rights are enshrined in the Companies Act. But those rights are sparingly used by the small shareholders. What they expect and how they can influence corporate govenance of any company is explained in this paper.
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Why is it important?
In the new Companies Act, 2013, we have observed many changes in provisions related to corporate governance. Class action suit and small shareholder protection are new in the system. Therefore this paper highlights the issues that though the legal environment is apt for small shareholder activism, are small shareholders ready to take the challenges.
Perspectives
The paper is quite contemporary as we have started witnessing lots of shareholder activism in India. But, still minority shareholders who have larger stake than the small shareholders are active. In the largest democratic country where the governments are elected through elections, small shareholders have undermined the power of their votes in Corporate Governance. Therefore the article is very apt.
Dr. Sunita Upendra Sharma
FMS, MSU
Read the Original
This page is a summary of: A Study of Small Shareholders’ Attitude towards Small-shareholder Activism, Indian Journal of Corporate Governance, May 2016, SAGE Publications,
DOI: 10.1177/0974686216635788.
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