Business – 1.5 Stakeholders – Business stakeholders | e-Consult
1.5 Stakeholders – Business stakeholders (1 questions)
Login to see all questions.
Click on a question to view the answer
Model Answer:
- Voting at General Meetings: Shareholders exercise voting rights at Annual General Meetings (AGMs) or Extraordinary General Meetings (EGMs) to approve or reject proposals such as mergers, acquisitions, changes to the board of directors, and major capital projects. Their collective vote can steer the direction of the company.
- Dividends and Share Price Pressure: By demanding higher dividend payouts or reacting to perceived under‑performance, shareholders can pressure management to adopt strategies that improve short‑term profitability, such as cost‑cutting measures, asset disposals, or restructuring initiatives.
Both mechanisms give shareholders a direct channel to shape corporate strategy, aligning managerial actions with shareholder expectations.