Will Osler comments in Financier Worldwide Magazine on what the pandemic has meant for shareholder activism and what management should expect moving forward.
Will says that management should be constantly monitoring its shareholder base, their objectives and investment strategies. “It is important for a company to be able to respond to shareholders in a meaningful manner, address concerns and misinformation and ensure an open and transparent dialogue. Management should continue to treat its public disclosure as an opportunity to engage with shareholders and clearly communicate results, strategy, objectives and opportunities to enhance shareholder confidence.”
Will also says that in the coming months, activists are likely to focus on improving governance to ensure that companies are on track to weather the storm of the pandemic. “Corporate governance, board diversity and corporate culture have garnered an increased and profound importance in 2020. Activists are leveraging these factors to pressure management. Companies need to ensure their corporate governance standards are frequently evaluated and strictly followed to prevent activists from exploiting weaknesses or inconsistencies.”
Bennett Jones