There're gains to be had from a strong board-activist partnership

THE discipline in being prepared for an activist campaign means that the board is aware of its state of governance and demonstrates that shareholder concerns in all forms are valued and taken seriously.

Public-listed companies are under constant scrutiny to deliver strong and consistent performance. With the advent of decentralised media platforms, shareholders are increasingly able to quickly and easily vocalise their views and band with like-minded peers to effect change in or for a company. While shareholding typically entails passive investment in a company, shareholders have a legitimate interest in its governance and a legal right to hold the board accountable.

Activist shareholders build their case across a broad range of corporate issues such as strategy, financial and non-financial performance, asset and capital allocation, conflicts of interest and corporate governance. When they believe that a company's management is not up to the job, they may even rally for a replacement or a major corporate change.