Strength in numbers

Australian investors have a lot to thank vocal shareholder activists for. Activists play a crucial role in shining a spotlight on poor corporate behaviour that could be dampening down the share price. By persuading shareholders to join in a proxy fight, activists can force companies to cut undeserving director and manager remuneration, explain their environmental policy, broaden the diversity on the board and address other high-profile issues.

Activists have ammunition such as the two-strikes rule, and when they mobilise and pool 5% of listed shares