Tag archives: activist investor

Exploring the Link between Gender, Governance, and Shareholder Activism

A study conducted by global consultancy firm Alvarez and Marsal (A&M) showed that companies with more women on their boards attract fewer activist investors. In particular, the study, which surveyed 1,854 public groups, revealed that companies not targeted by hedge fund activists had on average 13.4 per cent more women on their boards.

Despite being a European study, it appears that the push for diverse governance only seems to be getting stronger across the world, and Canada is no exception. With the passage of Bill C-25, all CBCA companies with publicly traded securities must now disclose how many women … Continue Reading

Shareholder engagement: A strategic opportunity

Shareholder engagement is a key tool in a board’s toolkit to prepare for and respond to potential activist investor campaigns.  A shareholder engagement program can provide valuable information on investor opinion, allow the board to head off issues before they become the subject of an activist campaign, and cement the support of important long-term investors.

Based on dialogue with institutional investors, investor associations and advisors, the EY Center for Board Matters reports that most investors believe that whether activism is beneficial over the long term depends on the particular circumstances.  Many investors stressed that in an activist situation, they talk … Continue Reading

Defensive Tools in Shareholder Activism: The “Voting Pill”

In today’s Financial Post,  Barbara Shecter highlighted the use of modified shareholder rights plans (colloquially known as “poison pills”) as an emerging defensive tool against opportunistic shareholder activism in Canada.  Traditionally, poison pills are used by boards of target companies as defensive tools to guard against unsolicited takeover bids.  By expanding the typical definition of “beneficial ownership” in a poison pill (which is typically limited to concepts of ownership and is used to determine whether the poison pill is triggered) by including securities that a shareholder does not own but has a right to vote or the right to … Continue Reading

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