Small investors lack capabilities, resources and motivation to exercise their voting rights in the general meetings. But, block holders (who hold more than five per cent shares) and institutional shareholders have the capacity and resources to analyse the outcome of a proposal on the performance and governance of a company. Therefore, it is their solemn duty to exercise the right. However, institutional shareholders sometimes abstain from voting.
Even in the highly-publicised extraordinary general meetings (EGMs) of Tata Group, which were held last December to remove Nusli Wadia as an independent director, voting by the institutional shareholders was 75.02 per cent
