SHARE HOLDER ACTIVISM AND CORPORATE GOVERNANCE REFORMS IN INDIA

AUTHOR- HARSHITA JOSHI* & DR. RESHMA UMAIR**

* B.A LLB, STUDENT AT AMITY UNIVERSITY LUCKNOW

** ASSOCIATE PROFESSOR, AMITY UNIVERSITY LUCKNOW

BEST CITATION – HARSHITA JOSHI & DR. RESHMA UMAIR, SHAREHOLDER ACTIVISM AND CORPORATE GOVERNANCE REFORMS IN INDIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (1) OF 2026, PG.725-729, APIS – 3920 – 0001 & ISSN – 2583-2344. DOI – https://doi.org/10.65393/FIFG9661

I.                 ABSTRACT

In recent years, shareholder activism has emerged as a significant force influencing corporate governance reforms in India. Traditionally, Indian companies have been characterised by concentrated ownership structures and promoter-driven management, which often limited the role of minority shareholders in corporate decision-making.

However, the increasing presence of institutional investors, enhanced regulatory supervision, and growing awareness among shareholders have contributed to a gradual shift towards greater accountability and transparency within corporate governance frameworks. This paper seeks to examine the evolving role of shareholder activism in strengthening corporate governance practices in India.

The study undertakes a doctrinal and analytical examination of the legal and regulatory framework governing shareholder rights, with specific reference to the Companies Act, 2013 and the regulatory measures introduced by the Securities and Exchange Board of India (SEBI), including the Listing Obligations and Disclosure Requirements Regulations. It analyses the various mechanisms through which shareholder activism operates, such as the exercise of voting rights, submission of shareholder resolutions, engagement with management, reliance on proxy advisory firms, and the use of class action remedies.

The paper also evaluates the contribution of institutional investors and stewardship principles in promoting responsible corporate conduct and protecting investor interests. Despite notable regulatory reforms, the effectiveness of shareholder activism in India continues to be constrained by several challenges, including promoter dominance, limited participation by retail shareholders, procedural complexities, and enforcement deficiencies.

Through an assessment of the Indian experience and a brief comparative analysis with developed jurisdictions, the paper highlights both the progress made and the gaps that remain. The study concludes by proposing legal and policy-oriented recommendations aimed at strengthening shareholder engagement, enhancing minority shareholder protection, and reinforcing corporate governance standards, thereby contributing to sustainable corporate growth and increased investor confidence in the Indian corporate sector.