Shareholder activism key to holding companies accountable

Local retail investors have been urged to consider the importance of shareholder activism as a way of keeping companies and executives on their toes in terms of management responsibility.

Traditionally, large institutional investors and fund managers dominate the share registers of listed and unlisted entities locally, with retail investors carried along on the decisions the former make. Retail investors tend to adopt dormant positions in the register and instead of informing themselves about issues of concern, rely on proxies to make their decisions.

In developed countries, however, shareholder activism has seen all classes of investors inform themselves and coordinate campaigns against mismanagement, environmental recklessness or poor financial performance, forcing corporate leaders to account.

Editor's Comment
Urgent call: Stop the killing!

The previous week, we had an article about a police officer shooting his wife, and turning the gun on himself, whilst he died, his wife survived and is still in the hospital.Sadly that was not the only article we carried on intimate partner killings. There was the Francistown case, where a young woman allegedly stabbed her ‘former boyfriend’ and many others which were reported throughout the week.As all the reports were coming in, a Botswana...

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