Corporate shareholders want to see their investments grow in an organization. They look for a viable strategy, sustainable vision, and strong financial performance.
When the company fails to deliver on shareholder expectations, investors may look to install new directors who will be more effective.
In the corporate world, these new board members are often called activist directors. These individuals are elected to the company board by a block of shareholders who want to see change.
This often happens when shareholders believe the company is heading in the wrong direction. Activist directors are sometimes met with reservations by other directors.
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