Some Activists Resort To Questionable Tactics

The poison pillars discussed in a number of previous articles in this space can serve to hamper the ability of shareholder activists to effect value-creating change at publicly traded companies. Indeed, these poison pillars have been standing tall for years, even as institutional investors have sought to increase their focus on corporate governance matters, which reinforces the need for even greater vigilance from investors and governance professionals.

Notwithstanding the preceding, the author of these previous articles (me) has no illusions as to the methods and motives of certain shareholder activists, who on occasion may resort to tactics that fly in the face of the fundamental spirit of shareholder activism which seeks to effect change at a company in a manner that benefits ALL of the shareholders of such company. Unfortunately, this fundamental spirit is not always upheld.