Does More Power for Shareholders Undermine Board Stewardship?
Private Sector Opinion 20: The level of shareholders’ expertise and experience needs to be questioned as they wield greater clout and become more deeply involved in strategic issues that should be the board’s purview. This misdirected involvement distracts shareholders from their principal and most important role: electing and overseeing boards. To play that role, shareholders must have the basic tools - from soliciting proxies of holders of voting securities to having the ability to seek court relief for a company’s oppressive conduct.
By Peter Dey, Chairman, Paradigm Capital, Inc and Chairman, Private Sector Advisory Group (PSAG)
Foreword by Peter Montagnon, Senior Investment Advisor, UK Financial Reporting Council, Member of the Global Corporate Governance Forum’s Private Sector Advisory Group, Member of the European Corporate Governance Forum and visiting professor at the Cass Business School.