Abstract:
The article unpacks the effects of the
corona virus (COVID-19) pandemic
on shareholder activism in public
companies in South Africa. In this regard,
the adequacy of the relevant provisions
of the Companies Act 71 of 2008,
that indirectly deal with shareholder
activism is discussed in the context of
the COVID-19 pandemic challenges.
Accordingly, challenges that affected
the promotion of shareholder activism
during and post-COVID-19 pandemic
such as COVID-19 pandemic restrictions
challenges; the lack of a comprehensive
legal framework for shareholder
activism in South Africa; inconsistent
enforcement of alterable provisions
during electronic shareholder meetings;
shareholder salience challenges; shareholder passivity; and the adoption of flawed measures to promote shareholder
activism are examined. Thereafter, the measures adopted to mitigate the effects of covid-19
on shareholder activism in South Africa, especially during virtual meetings and electronic
voting are explored.
