On voting

Voting is increasingly an issue for the investment company sector. Depending on the shareholder b...

Voting is increasingly an issue for the investment company sector. Depending on the shareholder base, smaller activists can hold disproportionate influence over the company's affairs. As investment companies have a higher proportion of retail shareholders than other listed companies, a smaller activist may be able to defeat resolutions that would be of benefit to the majority. For example, if a resolution needs a 75% majority, but only 20% of the total shareholder base turns out to vote, then a holder with just over 5% of the shares could block the resolution. Of course, some would...