Stewardship in Action

Stewardship in Action

Denitsa Georgieva

Stewardship Specialist

In this video, Denitsa explains how the role of the shareholder goes far beyond merely sharing in the financial gains of a company. Those investing in businesses have the right, and perhaps even the social responsibility, to pick apart the operations and practices of the companies they invest in and to analyse them in order to determine whether or not they are behaving in an appropriate manner.

In this video, Denitsa explains how the role of the shareholder goes far beyond merely sharing in the financial gains of a company. Those investing in businesses have the right, and perhaps even the social responsibility, to pick apart the operations and practices of the companies they invest in and to analyse them in order to determine whether or not they are behaving in an appropriate manner.

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Stewardship in Action

9 mins 33 secs

Overview

A shareholder has the right to express their opinion on how the company should conduct itself. This is primarily done through voting at the business's Annual General Meeting, or AGM. A single investor can also put forward a proposal to be voted on by all of the company's shareholders. Occasionally these proposals don’t even need to make it to the AGM to trigger change. If there is enough support for the proposal the company may decide to make the change themselves, before a vote is required.

Another form of stewardship coming to the fore is divestment. Divestment is becoming an increasingly popular way for people to signal their disapproval of companies' business practices and operations. Initiatives all over the world are encouraging pension funds, universities, banks, and other asset managers to divest from oil and gas companies, driving sustainable change.

Key learning objectives:

  • Understand the role of a shareholder

  • Understand the power of proxy voting

  • Comprehend the power of divestment

  • Learn how divestment is becoming increasingly important

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Summary
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Expert
Denitsa Georgieva

Denitsa Georgieva

Denitsa Georgieva is part of Tumelo, an innovative Fintech business that uses technology to help pension providers and investment platforms engage their underlying investors. She focuses on establishing a connection between underlying investors and their fund manager. This aims to enable better transparency and accountability across the investment value chain.

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