Engagement and Corporate Activism

This chapter examines shareholder rights and activism in the context of corporate governance, focusing on the evolution of European regulations and their impact on Italian companies. It highlights the evolution of shareholder engagement through the Shareholder Rights Directive (SRD I and SRD II), which aimed to increase transparency, encourage long-term investment, and improve corporate governance practices. The chapter describes various mechanisms to facilitate shareholder participation, such as the record date for voting rights and the appointment of proxies. It also discusses the increasing role of institutional investors in promoting sustainable and responsible investment strategies. The distinction between shareholder activism and engagement is explored, emphasizing the importance of active dialogue between shareholders and company management to promote long-term value creation. In addition, the chapter addresses the role of proxy advisors and solicitors in supporting informed voting and engagement processes.