Open AccessENHANCING CORPORATE DEMOCRACY BY THE USE OF SHAREHOLDER PROXIES
Author(s) -
Maleka Femida Cassim
Publication year - 2019
Publication title -
obiter (port elizabeth. online)/obiter (port elizabeth)
Language(s) - English
Resource type - Journals
eISSN - 2709-555X
pISSN - 1682-5853
DOI - 10.17159/obiter.v40i1.11307
Subject(s) - shareholder , proxy voting , corporate governance , voting , shareholder resolution , business , accounting , transparency (behavior) , democracy , proxy (statistics) , accountability , shareholder loan , corporate law , law and economics , economics , political science , law , finance , politics , disapproval voting , non conforming loan , loan , machine learning , computer science , non performing loan
Effective shareholder control over the board of directors is patently in the interests of good corporate governance, accountability and transparency. In recognition of this modern reality, the policy focus in company law has shifted to encouraging shareholder participation and shareholder engagement in corporate affairs. Bearing in mind that very few shareholders of large public companies attend meetings in person, proxy voting is of vital importance to corporate democracy. This article discusses enhanced rights conferred by the Companies Act 71 of 2008 in relation to shareholder proxies who attend, speak and vote at shareholders’ meetings. It also considers the pressing practical question whether companies may impose a cut-off time for the lodgement of shareholder proxies.