Stock ownership has become politicized. Many shareholders own stock in publicly-owned corporations for the sole purpose of advancing the shareholders’ own social or political agendas, while simultaneously assailing the corporations’ legitimate business operations. These activist shareholders are “nuisance shareholders.”
A primary tool of nuisance shareholders is the submission of non-binding precatory (advisory) proposals for discussion and vote at annual meetings of shareholders. Proposals from nuisance shareholders can coerce management into making decisions not in the best interests of the Company and its bona fide shareholders, and turn the annual meeting into a media-activist circus.
Steve Milloy, “I fought ExxonMobil management on climate — and I won”, JunkScience.com, 2017-03-13.
February 21, 2019
QotD: Nuisance shareholders
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