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Follow on Google News | New Business Book Summary Available for Dear ChairmanBy: www.bizsum.com According to Gramm: * Shareholder activism is here to stay. Shareholder activism is not a passing fad. There is a long and rich history of investors intervening in the governance of public companies. * Shareholders are powerful. When shareholders vote together, they can block corporate actions, instate new management, and affect the value of their shares. Public company boards are not legally required to prioritize profits, but because directors are elected by shareholders, they usually do. * Shareholder activism can be a guise for corporate raiding. Many investors launch shareholder interventions on vulnerable companies for the sole purpose of maximizing the value of their shares before cashing out. * Shareholder activists employ many different tools of persuasion. To win shareholder activist campaigns, investors have historically utilized everything from newspaper ads that criticize the CEO to proxy letters to verbal threats of hostile takeovers. * Good governance requires a team effort. Public companies work best when they benefit from fanatical CEOs; attentive, active boards of directors; and engaged shareholder bases. * Shareholder activism benefits public companies and the American economy. While some activist campaigns are misguided, the pervasive threat of activism keeps public company boards of directors accountable. To learn more, please visit http://www.bizsum.com End
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