28-05-2025
How small shareholders can actively shape corporate direction
'Boards have to start paying attention because they have to look after all stakeholders,' explains Anthonyrajah. 'This increased focus on that means that there is potential that someone who only has one share could have a voice.'
Although selling your shares in a mismanaged company is an option, Makete suggests that it may not be as effective if you want your voice to be heard, particularly if it's a company you believe in. The Barloworld AGM held earlier this year serves as a good example of shareholders making a difference in corporate governance. The majority of shareholders rejected a buyout offer and voted against a remuneration policy for independent directors.
Ways to have an impact, as a small shareholder: Connect with other shareholders: Build rapport with fellow shareholders to discuss recent updates, whether they involve policy changes, strategic announcements, or management appointments. Cultivating a network of shareholders can be a valuable asset when voting on corporate decisions.
Build rapport with fellow shareholders to discuss recent updates, whether they involve policy changes, strategic announcements, or management appointments. Cultivating a network of shareholders can be a valuable asset when voting on corporate decisions. Find the right setting to ask questions : Anthonyrajah advises that having your concerns heard by the higher-ups may depend on the setting. Scheduling a small meeting could prove to be more effective than waiting for the AGM to ask all of your questions.
: Anthonyrajah advises that having your concerns heard by the higher-ups may depend on the setting. Scheduling a small meeting could prove to be more effective than waiting for the AGM to ask all of your questions. Milestone funding: A financing method where the investor releases funds in stages, contingent upon reaching clear milestones. If feasible, milestone funding serves as an excellent strategy to mitigate risk and retain control as an investor.
To stay updated on the ever-changing world of investing, tune in to Investment School, brought to you by CFI, every Thursday on The Money Show with Stephen Grootes (6pm-8pm).
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