Shareholder activism has become an increasingly important touchpoint in the UK’s corporate landscape and globally. As institutional investors, hedge funds and retail investors seek to exert increasing influence over public and private companies, activism has evolved into a mainstream corporate governance tool.
Over the past few years, the UK has witnessed a surge in activist campaigns, reflecting global trends and a shift in investor expectations. All companies should be considering the impact of shareholder activism as, if neglected, it can be a block to the efficient running of company. It also highlights how shareholders (the owners) of companies can have a key role in shaping operational decision making.
Shareholder activism frequently operates as an important reminder to directors that the company’s shareholders are watching what they are doing and how they are doing it, emphasising the importance of promoting good corporate governance and regulatory compliance practices in all aspects of a business.
This article explores the growth of shareholder activism in the UK, the key drivers behind its rise and strategies for managing activist engagements effectively.
