Shareholder activism is a growing trend among listed companies.
Sometimes, the actions of directors are contrary to the wishes of
shareholders or shareholders feel that the incumbents are not
performing to the level expected, and a change in board composition
is necessary.
A key activist strategy is the power to require directors to
call a general meeting. Under section 74 of the Companies Act 1981
shareholders may requisition a Special General Meeting,
notwithstanding anything in the company's bye-laws, provided
they hold at the date of deposit of the requisition, not less than
10 per cent of the paid-up voting share capital of the company (or
in the case of a company not having a share capital, the members
represent 10 per cent of the voting rights).
