Navigating Corporate Influence: Outsourcing Shareholder Voting To PAF
- IJLLR Journal
- Jun 15
- 1 min read
Mayank Agnani, Institute of Law, Nirma University
“The quality of the company’s board has now become an important evaluation factor for institutional investors.”
- Russel Reynolds Association
ABSTRACT
In the evolving landscape of Corporate Governance in India, the phenomenon of shareholder activism – in which an interested subset of a corporation’s shareholders seeks to influence a company’s operations or direction – has been steadily increasing. This research paper aims to explore the dynamics of shareholder activism within the realm of Indian Corporate Law, focusing on its impact, effectiveness, and the legal framework governing such activities.
Specifically, the study seeks to address the impact caused by Proxy Advisory Firms (PAF) on the voting pattern of shareholders, how it impacts the long- term performance of the firms. To investigate this, the research examines case study of various shareholder activism in the contemporary times and also analyses the factors relied upon by the Proxy Advisory Firms to and due to that how activist shareholders are being viewed in such firms.
The findings of this study are expected to provide a comprehensive understanding of the role of shareholder activism in shaping corporate governance in India. It also aims to contribute to a deeper understanding of the benefits and challenges of the shareholder activism, offering insights for policy makers, corporate leaders and institutional investors in navigating the increasing influential aspect of proxy firms on shareholders.
Keywords: Shareholder Activism, Corporate Governance, Proxy Advisory Firms, Indian Corporate Law, long-term performance.
