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How Constructive Shareholder Activism Is Reshaping Public Company Governance

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How Constructive Shareholder Activism Is Reshaping Public Company Governance

The Changing Image of Shareholder Activism

For many years, shareholder activism had a reputation for confrontation. Activist investors were often associated with public disputes, leadership challenges, and aggressive campaigns to force rapid change.

That image is evolving.

A growing number of investors now approach activism through collaboration rather than conflict. Their goal is not simply to challenge management, but to work with corporate leaders to strengthen governance, improve operational performance, and create long-term value.

This approach is often described as constructive shareholder activism, and it is changing the way boards and investors interact in public markets.

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The Evolution of Activist Investing

Activist investing has existed for decades, but its methods have shifted significantly in recent years.

Earlier campaigns often focused on short-term financial outcomes. Investors would push for asset sales, leadership changes, or immediate capital returns to shareholders. While these tactics still occur, many investors now prioritize operational improvements and long-term strategy.

Modern activism is more research-driven. Investors frequently conduct extensive analysis of a company’s operations, governance structure, and capital allocation decisions before engaging with management.

This shift has changed the tone of activism. Instead of relying on public pressure, many investors now focus on dialogue with boards and executives. Their proposals often involve refining governance processes, improving strategic clarity, or strengthening operational efficiency.

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Constructive engagement has become an increasingly common way for shareholders to influence corporate decision-making.

Why Corporate Governance Has Become Central

Corporate governance now plays a central role in shareholder engagement.

Boards are responsible for overseeing strategy, managing risk, and ensuring accountability to shareholders. As investor expectations have increased, governance structures have become a focal point of activist discussions.

Investors frequently examine areas such as:

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  • Board composition and expertise
  • Committee structures and oversight responsibilities
  • Strategic planning processes
  • Leadership accountability

When governance frameworks are strong, companies often make decisions more effectively and maintain stronger alignment with shareholder interests.

As a result, many activist engagements now focus on governance improvements rather than dramatic structural changes.

Collaboration Instead of Confrontation

One of the defining characteristics of constructive activism is its emphasis on collaboration.

Investors increasingly prefer to work with companies through private discussions rather than public campaigns. These conversations allow both sides to evaluate ideas thoughtfully and implement changes gradually.

Constructive engagement often focuses on identifying operational or strategic opportunities that may not have received sufficient attention internally.

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Examples include reviewing pricing strategies, refining supply chain processes, or improving capital allocation decisions.

When companies approach shareholder feedback with openness, these conversations can become productive discussions about long-term business improvement rather than adversarial conflicts.

Applying a Long-Term Ownership Mindset

Another important development in modern activism is the shift toward long-term ownership thinking.

Many investors now approach public companies with a perspective traditionally associated with private equity investing. Instead of focusing solely on market performance, they analyze a business’s underlying operations and strategic direction.

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This perspective encourages investors to concentrate their efforts on a smaller number of companies where they believe meaningful improvements are possible.

A concentrated ownership approach allows investors to develop deeper insights into company operations and engage more effectively with boards and leadership teams.

The emphasis shifts from short-term market reactions to sustainable performance over time.

Governance Improvements as a Path to Value Creation

Governance improvements often play a key role in long-term value creation.

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Effective governance structures help companies make strategic decisions more efficiently and respond to market changes more effectively.

Investors who engage constructively with companies often focus on areas where governance can support stronger business outcomes. These discussions may involve refining board oversight processes, strengthening strategic planning frameworks, or ensuring leadership incentives align with long-term company performance.

When governance systems function well, companies are better positioned to pursue sustainable growth.

Preparing for Shareholder Engagement

Public companies can take several steps to prepare for constructive shareholder engagement.

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Strengthening governance frameworks is an important starting point. Boards should regularly review their composition to ensure members bring relevant expertise and diverse perspectives.

Improving transparency with investors also helps build trust. Clear communication about corporate strategy, operational priorities, and capital allocation decisions allows investors to understand leadership’s long-term vision.

Companies can also benefit from proactive dialogue with shareholders. Maintaining regular communication with long-term investors often helps identify concerns early and reduces the likelihood of adversarial campaigns.

Internal governance reviews can further help companies identify areas for improvement before external investors raise questions.

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Constructive Activism in Practice

Several investment firms have adopted collaborative engagement strategies when working with public companies. For example, some investors focus on governance improvements and operational changes through direct engagement with management teams, a philosophy reflected in the approaches of firms such as Engaged Capital.

This style of activism emphasizes careful research, strategic dialogue, and long-term thinking.

Rather than focusing on public confrontation, constructive engagement prioritizes identifying practical solutions that strengthen companies over time.

The Future of Shareholder Engagement

Constructive shareholder activism continues to shape the relationship between investors and public companies.

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Boards are becoming more attentive to governance structures. Investors are more informed and involved in discussions about strategy and accountability. Corporate leadership teams are increasingly open to dialogue with shareholders.

These changes suggest that shareholder activism is evolving from a confrontational tactic into a governance mechanism within modern capital markets.

As expectations around transparency, accountability, and long-term performance continue to rise, constructive engagement between investors and companies is likely to remain an important part of corporate governance.

The result is a more collaborative model of shareholder influence—one focused not on conflict, but on strengthening companies for the future.

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Power-led quartet join Killi

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Shares in West Perth-based junior Killi Resources surged 121 per cent after the junior appointed Nev Power as chair.

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At Close of Business podcast March 23 2026

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At Close of Business podcast March 23 2026

Ella Loneragan talks to Isabel Vieira about Grace Forrest’s push to end global modern slavery.

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Kim Kardashian Fuels Dating Rumors with Lewis Hamilton in Tokyo While Reflecting on Viral Oscars Mishap

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Kim Kardashian was traumatised by the robbery

Los Angeles — Kim Kardashian sparked fresh speculation about her personal life this week after photos surfaced of her stepping out with Formula 1 champion Lewis Hamilton in Tokyo, just days after a viral tumble at the 2026 Vanity Fair Oscars after-party. The 45-year-old entrepreneur and reality star, known for her business empire and high-profile relationships, continues to dominate headlines with a mix of fashion moments, family life, and entrepreneurial milestones.

Kim Kardashian was traumatised by the robbery
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The Tokyo sighting, captured in photos shared across social media on March 22, showed Kardashian and Hamilton walking closely together, with the SKIMS founder linking arms with the racing icon. Fans quickly interpreted the casual outing as evidence of romance, though neither has confirmed any relationship. The pair’s connection has drawn attention since earlier collaborations and mutual admiration, adding another layer to Kardashian’s post-divorce chapter following her 2022 split from Kanye West.

The Tokyo trip follows Kardashian’s high-profile appearance at the Vanity Fair Oscars party on March 15 at the Los Angeles County Museum of Art. Dressed in a curve-hugging gold Gucci gown from the Fall/Winter 2026 collection, she paired the look with sky-high Pleaser platform heels and icy blue contact lenses that gave her an almost unrecognizable appearance. The ensemble evoked her 2016 aesthetic, complete with a tousled bob hairstyle and dramatic makeup.

Behind-the-scenes footage shared on TikTok and Instagram on March 18 captured a lighter moment: while navigating an outdoor path with friend Stephanie Shepherd, Kardashian questioned if her shoes needed tightening. Moments later, she lost balance, stumbling and partially falling into a bush. She twisted her ankle but recovered quickly, with help from those nearby, and proceeded to the red carpet. Kardashian laughed off the incident in her posts, writing captions that embraced the relatable mishap. “Every girl has been here before,” one viral clip echoed.

The near-fall became a social media sensation, with outlets like Page Six, E! News, and Complex highlighting the clip. Kardashian attended alongside sisters Kendall Jenner, Kris Jenner, and Kylie Jenner, reinforcing the family’s strong presence at Hollywood events. Her gold glitter look drew praise for its elegance, though the footwear proved challenging in the skin-tight dress.

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Business remains a priority for Kardashian in 2026. She was named a CNBC Changemaker earlier this year for leading SKIMS to a $5 billion valuation in 2025 and driving global expansion. The brand’s ongoing partnership with Nike produced the NikeSKIMS Spring 2026 collection, released in March. Kardashian fronted the campaign, showcasing a mix-and-match system of two-toned activewear essentials designed for versatility. The drop, available online since March 12, highlights her influence in shaping inclusive, performance-driven apparel.

Kardashian has also completed her six-year legal apprenticeship, earning her law license and positioning herself as an advocate for criminal justice reform. Through her private equity firm SKKY Partners, she pursues investments aligned with her values. These professional strides underscore her evolution from reality TV star to multifaceted mogul.

Family moments provide balance amid the spotlight. Kardashian frequently shares content with her four children—North, Saint, Chicago, and Psalm—co-parented with West. Recent TikToks featuring North highlight their close bond, with fans anticipating more collaborative content.

The divorce from West, finalized years ago, occasionally resurfaces in discussions. Kardashian has spoken positively about maintaining civility for the children’s sake and even praised certain YEEZY designs in interviews. She has emphasized personal growth post-split, describing a “new me” with renewed confidence independent of past relationships.

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As speculation swirls around her Tokyo appearance with Hamilton, Kardashian maintains focus on her brands, philanthropy, and family. Her ability to turn everyday mishaps into viral, relatable content—while commanding attention at elite events—demonstrates why she remains one of entertainment’s most influential figures.

With SKIMS’ continued growth, potential legal advocacy expansions, and an active social presence, Kardashian’s 2026 trajectory blends glamour, business acumen, and authenticity. Whether navigating heels or headlines, she navigates the spotlight with characteristic poise and humor.

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Tokio Marine to form partnership with Berkshire Hathaway, initially sell 2.49% stake

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Tokio Marine to form partnership with Berkshire Hathaway, initially sell 2.49% stake


Tokio Marine to form partnership with Berkshire Hathaway, initially sell 2.49% stake

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Measles Warning Issued for Western Sydney, Blue Mountains

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type 1 and type 2 diabetes
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A measles warning has been issued for western Sydney as well as the Blue Mountains.

The warning was issued after a confirmed case visited public locations in these areas while unknowingly infectious.

Measles Warning Issued for Western Sydney, Blue Mountains

According to Sky News, the Nepean Blue Mountains Local Health District (NBMLHD) said that the unnamed person attended several locations after coming in contact with another confirmed case earlier this month.

The public is advised to check the full list of locations posted by NSW Health. If you have visited any of these locations during the indicated dates and times, you are advised to watch out for symptoms and contact a medical professional should they occur.

NSW Health recommends that those affected should monitor for symptoms for 18 days.

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It likewise recommends those who were at any of these locations at the specified date and time and to contact the local Public Health Unit should any of the following apply:

  • you know you are unvaccinated and it has been less than three days since your exposure
  • you are pregnant, have a weakened immune system, or have an infant who was exposed and it has been less than six days since the exposure

What Are Measles?

The World Health Organization (WHO) calls measles “a highly contagious disease caused by a virus.”

“It spreads easily when an infected person breathes, coughs or sneezes,” WHO explains. “It can cause severe disease, complications, and even death.”

It can take around 10 to 14 days before symptoms usually appear. The most visible symptom of measles is a rash, which typically begin seven to 18 days after exposure. It typically starts on the face and neck before spreading to other parts of the body.

Other early symptoms include:

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  • Running nose
  • Cough
  • Red and watery eyes
  • Small white spots inside the cheeks

“There is no specific treatment for measles,” says WHO. “Caregiving should focus on relieving symptoms, making the person comfortable and preventing complications.”

One of the ways to prevent measles is by being vaccinated against it. WHO assures that the vaccine is safe to use, inexpensive, and effective.

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AbCellera Biologics Inc. (ABCL) Presents at 2026 KeyBanc Capital Markets Healthcare Virtual Forum Transcript

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

AbCellera Biologics Inc. (ABCL) 2026 KeyBanc Capital Markets Healthcare Virtual Forum March 17, 2026 9:00 AM EDT

Company Participants

Martin Hogan – Senior Director of Strategic Finance & IR

Conference Call Participants

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Scott Schoenhaus – KeyBanc Capital Markets Inc., Research Division

Presentation

Scott Schoenhaus
KeyBanc Capital Markets Inc., Research Division

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Great. Thank you, everyone, for attending our Virtual Healthcare Forum. I’m Scott Schoenhaus, health care tech analyst here at KeyBanc. Wrapping it up for today, last fireside chat, Martin Hogan, who is the Senior Director of Strategic Finance and Investor Relations at AbCellera.

Question-and-Answer Session

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Scott Schoenhaus
KeyBanc Capital Markets Inc., Research Division

Martin, we have probably a lot of new investors to your story, and there’s a lot of heightened interest and new interest on tech-enabled drug discovery. So maybe give a brief background on AbCellera and its platform, where you guys have been over the last several years and where you are today?

Martin Hogan
Senior Director of Strategic Finance & IR

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Absolutely. Well, first of all, Scott, thanks so much for hosting us. Pleasure to be at your forum again. I will be making some forward-looking statements, so please consult our SEC filings for risk factors and other notes around that.

Yes, we’ve been on a really exciting journey that now stretches for about 13 years, where for the first — easily for the first decade, we made significant technology investments, building out capabilities to go from target nomination to now manufacturing drug product for antibody-based therapeutics with a very heavy focus initially around several core technologies where we would say the — what allowed us to get going on this journey was technological differentiation in drug discovery and the investments that we’ve made since then and the experience that we’ve built in over 100 drug discovery programs have allowed us to build an

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Starting SIPs in new financial year? Experts suggest largecap, flexicap mix; prefer gold over silver

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Starting SIPs in new financial year? Experts suggest largecap, flexicap mix; prefer gold over silver
With the beginning of the new financial year, many new investors who are looking to start their mutual fund SIP journey in this financial year, mutual fund experts recommend investing in a mix of large cap and flexi cap, consider gold for hedging against global uncertainties and silver can be avoided at this point.

Sagar Shinde, VP Research at Fisdom told ETMutualFunds that for FY27, SIP allocations should focus on a balanced mix led by large cap and flexi cap funds, which offer better stability and earnings visibility in the current phase of valuation consolidation.

Also Read | Planning child education with mutual funds? Expert suggests right fund mix and key portfolio tweaks

“Midcaps can be added selectively for growth, while small caps should be limited and approached only through SIPs due to higher volatility.”

In terms of commodities, gold can be considered (around 5–10%) as a hedge against global uncertainty and currency risks, silver can be avoided at this point, as a large part of its future expectations appears to be already priced into current valuations, limiting near-term upside, he further said.

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Another expert, Arjun Guha Thakurta, Executive Director, Anand Rathi Wealth Limited shared with ETMutualFunds that investors should have a long term investment strategy in place which they will follow for the long term and can have a 55% exposure to large cap and the rest in mid and small caps.
Thakurta further said that investors can view gold as a defence asset in the portfolio, replacing debt. Hence exposure should be within the 20% allocation of debt in the total portfolio. Investment can be done through Gold ETFs. We do not recommend investing in silver due to its poor risk adjusted performance over the long term.

SIP strategy

With investors wondering whether to increase, decrease or maintain the same SIP amount and whether it is relevant to take international exposure during the ongoing geopolitical tensions, experts recommend continuing with ongoing SIPs and stepping up afterwards. Investors should avoid the mistake of cutting SIPs during volatile phases, as these periods aid long-term accumulation

Thakurta said that investors in FY26 should focus on disciplined investing and not change their strategy based on short term market movements and we recommend that 20-40% of one’s income inflows should be directed towards SIP investments, every month and if possible, stepping up your SIP every year is also an effective strategy for long term wealth creation.

He further said that international funds can offer exposure to global markets, but they do have a track record for volatility and uneven performance. Hence, investors are best avoiding relying heavily on them and they would benefit more from an SIP in diversified domestic equity funds over the long term, as they provide stronger long-term growth and better risk-adjusted returns.

To this, Shinde said that given the current market environment marked by valuation consolidation and resilient domestic fundamentals, the ideal approach for FY27 is to continue SIPs and gradually increase them rather than reduce exposure.

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A limited international allocation (around 10–15%) can also be considered to diversify geographically, capture opportunities outside India, and benefit from currency depreciation. However, given the limited mutual fund options currently available, investors should be selective—evaluate the geography, underlying holdings, and strategy before allocating, and invest only if it fits the overall portfolio requirement. Alternatively, international exposure can also be explored through routes like GIFT City, Shinde further said.

Also Read | MF Tracker: This flexicap fund turns Rs 10,000 SIP to Rs 1.35 crore in over 2 decades

How to deal with SIPs in underperforming funds

Many mutual fund investors wonder what to do with the SIPs in the fund that are offering negative returns or are underperforming compared to their respective peers or benchmarks and when should one decide to book profits from their SIP investments.

In response to this, Shinde said SIPs in underperforming funds should not be discontinued solely based on short-term performance and if the underperformance is recent or driven by broader category trends, and the fund’s strategy and management remain consistent, it is prudent to continue. However, a switch should be considered if a fund has consistently underperformed over a short and longer period or ranks persistently in the bottom quartile, or exhibits style drift or management concerns.

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He further said that profit booking in SIP investments should be guided by disciplined asset allocation rather than market timing and investors should rebalance when equity exposure exceeds their target allocation or when specific segments such as mid and small caps become disproportionately large. Gains can then be redeployed into safer assets like debt or gold, rather than exiting equity entirely.

While asking investors to define what an underperforming fund is, Thakurta said investors should look at the fund’s performance across various time periods and over the long term to see if the underperformance currently is due to market corrections, which is normal, or if the fund has consistently been in the bottom quartile of its category or failed to beat its benchmark over the long term so it is the latter, then they can consider switching.

Investors should also look at different parameters to assess whether a fund is suitable in their portfolio, such as market cap allocation, fund manager strategy, AMC track record, etc, he added.

Mistakes to avoid

Many mutual fund investors invest in any fund without realising if the fund aligns with their risk appetite, investment horizon, and financial goals. Most of them invest in NFOs or go with the options where others are investing.

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While mentioning what mistakes to avoid, Tharkurta said while planning for SIPs for FY27, investors should ensure they have their investment goals in place and formulate their strategy accordingly. One of the top mistakes investors make is stopping or pausing their SIPs in times of volatility. Market swings are part of normal market cycles and investors should stay invested and not panic sell.

As a second mistake, Thakurta said that skipping SIPs is also common among investors, and instead they should prioritize investing before planning their expenses. Half yearly review of portfolio should be done to assess one’s asset allocation and goal alignment, and yearly review should be done to revisit financial goals, risk profile, income changes and tax planning. If there is any misalignment, they can bring it back to ensure it is in line with what was intended.

Also Read | All investments in green? Here’s how to realign your mutual fund portfolio

Shinde said that investors should avoid common pitfalls such as stopping SIPs during market corrections, chasing recently top-performing funds, over-allocating to high-risk segments like small caps, or holding an excessively large number of funds, which leads to portfolio clutter.

He further said that ignoring asset allocation discipline is another critical mistake. Instead, investors should maintain consistency, focus on long-term compounding, and periodically rebalance their portfolios. SIP strategies do not require frequent changes; a review every six months is sufficient for monitoring, while a more detailed review and rebalancing exercise can be undertaken annually to ensure alignment with financial goals and market conditions.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in along with your age, risk profile, and Twitter handle.

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