The coming wave of shareholder activism

With investors beginning to ask the right questions, markets are set to change for the better

One recent trend in Indian equity markets has been the rise in shareholder activism. Large shareholders — be they banks, funds or institutions— are flexing their voting muscle and bringing about governance changes. Over the past week alone, we have seen a large Indian private sector bank (owning almost 25 per cent of the equity) ask for an extraordinary general meeting (EGM) to replace the entire board of a satellite direct-to-home company. 

This was then followed by a large foreign fund owning almost 18 per cent of the company asking for an EGM to replace the promoter and certain directors of