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In recent years, shareholder activism has emerged as a significant force reshaping corporate governance across the globe. This paper explores how active shareholders are increasingly pushing for greater transparency, accountability, and strategic realignment within companies. Shareholder activism now serves as a vital mechanism through which investors—particularly institutional and minority shareholders—exercise their rights to influence corporate policies, leadership decisions, and long-term strategies. The study demonstrates how activism enhances investor participation while acting as an important check on managerial discretion. It highlights the expanding role of institutional investors, the prevalence of proxy battles, and the growing impact of ESG-focused campaigns in redefining governance practices. Various forms of shareholder action are examined, including voting against management proposals, raising public concerns, engaging directly with boards, and seeking legal remedies where necessary. Special attention is given to the rise of ESG-driven activism, reflecting the shifting priorities of today’s investors. The paper also analyses the evolution of shareholder activism in India, shaped by regulatory reforms and changing market dynamics. Additionally, it considers the implications of activism for capital markets and discusses some potential drawbacks associated with shareholder interventions.
