Activist investors: Pushing for change, quietly

From active selection and passive ownership to passive selection and active ownership, activist investors adopt a different tone in India

Those hoping to witness fireworks this proxy season (from July 1 to September 30) would no doubt be disappointed by the absence of any notable skirmishes. True, 35 shareholder resolutions were defeated this season, but this was in line with the 34 defeated last year and was just ahead of the 28 resolutions in 2020. But none of these can be described as a brawl. The shareholding pattern, where even today an average 55 per cent of the NSE-500 company shares are held by promoters, serves as a bulwark against full-throttled activism. If the ownership structure was to change to