Time to give shareholders real power over directors’ rewards?

As yet another shareholders meeting registers disapproval of executive pay, this time at easyJet, the question arises as to whether now is the time to hand some greater control over directors remuneration to shareholders.

Read more »

Paying the price for fighting for shareholders rights

Lawyers involved in fighting for shareholders rights are not normally thought to be in a dangerous profession.  That is unless you are a lawyer in Russia.

The death has been announced (see Daily Telegraph article) of Sergei Magnitsky, 37 year old father of two and a lawyer in the firm of Firestone Duncan in Moscow who were representing Hermitage Capital Management.

Read more »

Shareholder Rights Directive

The EU Shareholder Rights Directive is a grand title but on close analysis it does not add much to the armoury of a UK shareholder aggrieved with the company in which they hold shares.

Consequently it has been implemented in the UK (via the Companies (Shareholders’ Rights) Regulations 2009 with relatively little fanfare.  The main reason for the lack of excitement is that the regulations generally only apply to “traded companies” and they only marginally increase shareholders rights or powers overall.

Read more »

FSA gives green light to shareholders acting in concert

A noteworthy addendum to Sir David Walker’s review of corporate governance is the open letter from the FSA to the Chairman of the ISC dated 19 August 2009.

This letter flags up the FSA’s support for more active shareholder engagement in disputes with boardrooms, with a view to promoting good corporate governance.  This encouragement of shareholder activism at this level may be an important development.

Read more »

Shareholders’ Rights / Electors’ Rights

There has been an avalanche of articles about the scandal of MP’s expenses as the Daily Telegraph drip feeds us the latest salacious details.  My own perspective is to consider the parallels with shareholder disputes and the timely exercise of shareholders voting rights at Shell’s AGM provides an interesting comparison.

Read more »

All in the same boat

There is an interesting article in the latest edition of the Director Magazine about investor relations.  It is a useful guide on ways to avoid shareholders disputes arising, of particular relevance to companies with a number of shareholders who may be at risk of shareholder activism.

Follow this link to read the article.

Shareholder rights - a blunt instrument

Shareholders have statutory and other rights and in theory at least are the ultimate controllers of any company.  However two recent examples show how these rights are something of a blunt instrument when it comes to forcing the company in a particular direction.

Read more »