Voting on shareholder proposals at Zerodha

01 Apr 2022

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.

So, in an effort to encourage more retail investors to vote, we’ve made the process simpler. You can now vote on the resolution of the companies you have invested in, directly from Console.

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.

View on Twitter →