If shares are an area that interests you, then you probably know that if you buy shares and at least part of the shares of one company, you have the right to part of the whole company’s profit.
So, you become the owner of part of the company and have certain rights and obligations.
You have the power to influence company policies. It is this power of ownership of the shares of companies traded in the market that is used by Shareholder advocacy.
Through this process, they promote change in almost every sense of management, social, environmental. For that, Shareholder advocacy is also shared by Shareholder activism. And there are a large number of such associations around the world, and one of them in which you can have full confidence is MDF Law.
Maybe the essence is still not completely clear to you, so we offer you 4 things you need to know about Shareholder advocacy
1. Clearly and loudly through resolution
Any shareholder who owns shares of one company for not less than one year and not less than the value of $ 2,000, can express their position, plan and vote related to the company. The practice is to discuss this at the annual session when all important decisions about the business of a given company are made. That is how the resolution is passed, and the rights and obligations are determined by the dream. This is a great way to advocate for the changes you want.
2. Your voice can also be heard through a power of attorney
Every shareholder who owns shares in a publicly-traded company is invited to participate in the annual general meeting of the corporation. This is a great opportunity to express your opinion on all crucial issues concerning the company. This vote can be direct, it can also take place through a power of attorney. If voting is indirect, it is necessary to appoint proxies of the fund who will vote on your behalf. In this way, you can be sure that your vote is in line with socially responsible goals, and that your invested funds have not been wasted.
3. Even greater engagement
Depending on how many shares of one company you own, the possibility of your greater or lesser commitment to change will also depend. If the actions are large, then you have the possibility of greater influence. In that case, fund managers can communicate directly with company executives to raise or accelerate major investor issues. Fund managers have the opportunity to accelerate and encourage the creation of desired changes, regardless of whether it is social, environmental, or any other change.
4. The first Shareholder activist was Isaac Le Mer
Isaac Le Mer, a family man of only 22, is considered a forerunner of today’s Shareholder activism. He was the director of a Dutch East India Company, and in 1609 was one of the first to be short a stock. What is certain is that he was not nearly as successful or ambitious as today’s Shareholder activism, but he had to start from something.
If you are Shareholder activism you are already aware of most of what we have stated.
Some things are learned on the go, on someone else’s or one’s own experience. However, what is the essence of this whole story about Shareholder activism is that it is necessary to use the power that brings capital only and exclusively for good.