Legal Tools For Active Or Activist Shareholders

Boards of quoted companies should prepare to face an increasing risk of campaigns from investors.  These may come from activist shareholders, whose investment strategy includes proactively seeking catalysts for value creation often through structural change in the company, or from investors who aim to influence board strategy, either to drive value creation or for commercial,  political, environmental, social or ethical reasons. 

Investors are being encouraged to become engaged and active through recent changes in regulation, in England and at EU level, designed to encourage long term investors.  Investors who may have traditionally taken a more passive approach are being empowered with additional tools enabling them to voice concerns and to influence and implement change.  This article looks at some of the tools available to investors who may be considering actively engaging with a company and highlights  issues which boards increasingly need to be prepared to face.