Investor’s rights (Part 1): The Right to Voice Opinions

As a general rule, you as a shareholder do not normally have the right to be directly involved in the running of a company. However, shareholders can still protect the integrity of their investment and indirectly influence corporate decisions by engaging in active dialogue with the directors and corporate management. In this article, we will take a closer look at the various platforms for investors to make their voices heard and how this can help influence the company that they invested in.

"Shareholder activism" is a broad term that encompasses the many ways in which investors have engaged corporate management on a broad array of issues. Concerned investors have been known to use a range of tactics to lobby for greater corporate responsibility, such as:

• having dialogues with management;
• letter-writing campaigns;
• attending annual general meetings (AGMs); or
• drafting resolutions and requisitioning extraordinary general meetings (EGMs).

In Malaysia, shareholder activism has become more common when compared to the past. For example, minority shareholders are now taking on a more active role in safeguarding their investments.

Avenues to express concern

So, how does an investor exercise his right to voice his opinion so that he is not taken for a ride? As an investor/shareholder you have several options to exercise your rights by making yourself heard. They are: