Shareholders' activism and their power to instruct

An important measure of shareholders' power is their ability to initiate and approve proposals. however,in many countries which have transplanted or inherited the anglo-saxon model of governance,shareholders intending to present their proposals to a general meeting often face a significant legal barrier due to the division of power doctrine. this article examines recent decisions within the commonwealth where attempts have been made to reconfigure the division of power which confers to the board the power to decide on management matters. the article adopts a qualitative research method using case study of decisions in several commonwealth countries where shareholders have attempted to present proposals on matters which ordinarily fall within the board's jurisdiction. despite the strong opposition that shareholders face to reconfigure the division of power there is an increasing trend of shareholder- initiated proposals within the commonwealth,reflecting changing community expectations. © universiti putra malaysia press.