Question

Discuss how Coles is an attractive shareholder activism target.

Note:  Coles is a supermarket, retail and consumer services chain

Answer 1

Shareholder activism is a process in which shareholder will be using his rights in order to bring a radical transformation in the working of the company and they will be trying to either change the working approach of the management or bringing radical change in the management of the company.

Coles is an attractive shareholder activism target because-

A. this company is often accused with not working in the trust and honesty so shareholder activism can spot this and they can try to change the management of the company

B. this company is often accused with manipulation of the books of accounts so, shareholders will be trying to restore the integrity of the management through shareholder activism

C. This company is also accused of not respecting the environmental laws and violation of the environmental laws to a large extent so share holders can try to bring a radical change

D. This company is also accused of engaging into insider transactions which is against the interest of the shareholders for shareholders can try to bring a radical change in the management of the company.