What Is The Investor Rights Movement?

The investor rights are also referred to as shareholder rights or shareholder activism. The need for shareholder or investor rights emerged following the stock market crash in late 1929, caused by a lack of transparency on the part of companies and market manipulation.

What is the investor rights movement?

In simple words, it refers to the efforts of shareholders of publicly traded companies to make sure that managements are more answerable for their actions. Seeking to improve disclosure, accountability and responsibility among company managers, the investor rights movement tries to accomplish this through formal proposals as well as informal dialog.

One of the main objectives of the current investor rights activists is to change the election process of company boards of directors so that each and every director is elected at once. The main idea is to oppose to the stagger system that is commonly been used in far too many instances. The stagger system promotes incompetent or shrewish managers keeping effective control of boards of directors for at least two years and sometimes even longer. It becomes quite obvious to stockholders that the existing board is acting outrageously against the interests of the shareholders of the company.

If one seeks any information about investor rights activists, the best sources are the proxy statements which each and every one of the companies in which you own stock are required to send to you each and every year as part of their process of getting their in-house chosen directors elected. Promoting the stockholder right of cumulative voting for directors, even in the most monolithic corporations held largely by trustees indifferent to the legitimate interests of the real owners of the shares, the investor rights movement tries to ensure that there can be elected at least some voice for the rights and interests of actual owners.

Key Points Of Investor Rights Movement Discussed And Reviewed

Be a smart educated investor and learn the main points of investor rights movement to ensure that company managements are more accountable for their actions.

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What Is The Investor Rights Movement? Know More About Your Rights

Understand the investor rights movement in full terms. Become aware of your rights and privileges that come along with being an investor.

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