minority stockholder activism

Minority stockholder activism involves shareholders who own less than 50% of a company's shares using their voting power to influence management decisions, company policies, or strategic direction. These investors, often called minority shareholders, may push for changes like improved governance, better performance, or strategic shifts, often by proposing resolutions at shareholder meetings or engaging with management. Their goal is to protect or boost their investment value, even though they don't hold a controlling interest. This activism can help ensure the company is managed more effectively and aligns with broader shareholder interests.