Voting on shareholder proposals at Zerodha
As a shareholder of a company, you are entitled to vote on important company decisions like board appointments, corporate actions, mergers & acquisitions, executive compensation, etc. But very few retail investors vote on shareholder proposals. One reason for this is, of course, retail investors are a small part of the Indian markets. The retail shareholding in NSE-listed companies is about ~7%.
There’s also a lack of awareness among investors that they are entitled to vote on company resolutions. Just about 1-2 lakh retail investors voted on company resolutions in the past few years. The other issue is that most retail guys think that their vote doesn’t make a difference. You could argue that this is one reason why minority shareholders have always been taken for granted historically.
We had also recorded a brilliant podcast with Sivananth Ramachandran, the director of capital markets policy at CFA India, and Amit Tandon_in, the founder and managing director of IiAS on the rights of shareholders and corporate governance. Do listen.