👉 The shareholders' weapon, also known as the "shareholder rights agenda," is a strategic tool used by activist investors to influence corporate governance and drive change within companies. It involves gathering a significant number of shares, often exceeding 5%, to gain voting power and leverage negotiations with management. By doing so, shareholders can push for strategic shifts such as cost-cutting measures, asset sales, changes in leadership, or even the sale of the company. This tactic empowers shareholders to advocate for shareholder interests, potentially enhancing corporate performance and value, while also holding management accountable for their decisions.
