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International Journal of Law and Management: The adoption of shareholder activism by minority investors in Mauritius and a comparative analysis with the UK laws
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Abstract
Purpose – Shareholder activism is gaining popularity across the globe especially in today’s context where
the option of giving up and selling shares to exit the company has become obsolete. Hence, the purpose of this
research paper is two-fold, firstly, to investigate the extent to which the minority shareholders of companies
listed on the Stock Exchange of Mauritius adopt and make use of the various tools of activism; and secondly,
to compare the UK laws on shareholder activism with that of Mauritius.
Design/methodology/approach – To achieve these objectives, this study adopted the qualitative
research method. Primary data was collected by conducting a survey on minority shareholders of Mauritian
listed companies to figure out the extent to which they resort to activism tools, while secondary data was
collected through a qualitative legal, document and content analysis to scrutinise regulatory provisions and
existing literature on the researched topic.
Findings – The results show a moderate implementation level of shareholder activism by the minority
investors in Mauritius although it was noted that minority shareholders are more likely to resort to the
internal tools of activism rather than external methods. Further to the comparative study conducted, this
research recommends a more active participation of the Mauritian regulatory bodies, amendments to the
Mauritius Code of Corporate Governance and Mauritius Companies Act and the establishment of a
commission responsible for overseeing the exercise of shareholders’ powers and promoting derivative
lawsuits among minority shareholders.
Originality/value – Few researchers like Beebeejaun and Koobloll (2018) analysed shareholder activism
through the lens of corporate governance with the view of providing recommendations to bring amendments
in the Mauritian corporate law landscape. However, to the best of the authors’ knowledge, no research has yet
been effectuated on the extent to which shareholder activism is practised by the minority investors in
developing countries, for which this existing study aims at filling in the research gap.
Ambareen Beebeejaun and Pramod Kumar Bissessur - Personal Name
NONE
Text
ENGLISH
EMERALD INSIGHT
2023
ENGLAND
JURNAL ILMU HUKUM
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APA Citation
Ambareen Beebeejaun and Pramod Kumar Bissessur. (2023).International Journal of Law and Management:
The adoption of shareholder
activism by minority investors in
Mauritius and a comparative
analysis with the UK laws.(Electronic Thesis or Dissertation). Retrieved from https://localhost/etd