Boards Beware: Shareholders at the Gate: For directors, few aspects of governance are more stressful than capital management decisions. You can be sure you...

Boards Beware: Shareholders at the Gate: For directors, few aspects of governance are more stressful than capital management decisions. You can be sure you will be watched closely not only by your shareholders, but also by those who represent them - particularly when issuing new equity or buying and selling assets. Best practice corporate governance and a sharp eye on duty of care obligations are a must. Since the 2012 case of Transpacific Industries (ASX: TPI), no shareholder lawsuits have been filed on the basis of shareholders not receiving the 'best possible price' for their renounced shares. And although shareholders have in the past publically expressed their anger in protest of heavily dilutive placements, they have not yet taken a company to court. But the rapid growth of shareholder activism suggests that it isn't so far-fetched to presume they could - and in the not too distant future. Since the GFC, Australia has seen a steep rise in shareholder activism. In mainstream financial press, the upsurge has even been compared to the Arab Spring. Most recently: See more at: (VIEW LINK)


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