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Infosys must learn to deal with activist shareholders

In a statutory filing with the US Securities and Exchange Commission (SEC), Infosys has said that activist shareholders may adversely affect its ability to execute strategic priorities and devalue its stock. Though Infosys clarified that the filing did not refer to any particular group of shareholders or individuals, the hint was quite clear: They are none other than the company’s founders who have more than once publicly locked horns with the board in recent times. Responding to the activists can divert the attention of the board, management and employees and adversely affect their ability to execute the company’s strategic priorities,