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International Journal of Law and Management: Minority shareholder activism in light of the Indian companies act, 2013
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Abstract
Purpose – The genesis of “shareholder activism” in the USA may be traced back to several decades, but it
only evolved in India at the start of the 21st century. This paper aims to explore the concept of “shareholder
activism” in the Indian context, in light of the New Companies Act, 2013. The act is envisioned as a precursor
to invoking the intention of shareholders to confront managers. Further, it aims to look at the possibilities of
using tools of shareholder activism to make companies aware of their concerns.
Design/methodology/approach – Authors explore the concept of shareholder activism with the help of
textual analysis, using R. Then, the authors study the mediating effects of “shareholder’s intention towards
activism” between the “regulatory mechanisms” and “the usage of various tools of activism”, using the partial
least square approach.
Findings – Regulatory mechanisms, such as the Companies Act, 2013, enhance the shareholders’ power to sensitise
companies towards various corporate governance issues. It also increases their intention towards shareholder
activism, eventually leading to favourable opinion on using various tools of “activism” in their investee companies.
Practical implications – This study is a unique attempt to assess the minority shareholders’ potential to
become active in their investee companies induced by changes in the rules and regulations of a country.
Originality/value – Shareholder activism in India has not been thoroughly explored thus far. This paper
specifically studies the opinions of retail investors, who possibly could increase companies’ accountability
towards their minority shareholders, especially in light of the New Companies Act, 2013.
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Text
ENGLISH
EMERALD INSIGHT
2022
ENGLAND
JURNAL ILMU HUKUM
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APA Citation
Pooja Sharma. (2022).International Journal of Law and Management:
Minority shareholder activism
in light of the Indian
companies act, 2013.(Electronic Thesis or Dissertation). Retrieved from https://localhost/etd