Diligent and Olshan Reveal Latest Shareholder Activism Trends in Shareholder Activism Annual Review 2024

Diligent Market Intelligence issued its Shareholder Activism Annual Review 2024 in collaboration with Olshan’s Shareholder Activism Practice. The review features an overview authored by Andrew Freedman, Olshan Co-Managing Partner and Chair of the firm’s Shareholder Activism Practice, in which Andy writes, “Any way you look at it, 2024 is already shaping up to be an eventful year for shareholder activism.” He also explains the effects of the universal proxy card on activism: “The real impact we have seen from UPC is more of a willingness by boards and their advisers to reach cooperation agreements in the face of activists targeting the most vulnerable ‘weakest link’ incumbents with highly qualified nominees.” The review also includes an in-depth interview with Vice-Chairs of the firm’s Shareholder Activism Practice Elizabeth Gonzalez-Sussman and Ryan Nebel for the Q&A feature. Elizabeth and Ryan share their key takeaways after a full year of observing the effects of the universal proxy card rules adopted in 2022, their reactions to the new 13D rules going into effect in 2024 and the impact they will have on activism, and their expectations for the 2024 proxy season. “Recently,“ Elizabeth notes, “a Delaware court, in the case Ted Kellner v. AIM ImmunoTech struck down several advance notice provisions that the court found were ‘overbroad, unworkable and ripe for subjective interpretation by the board.’ As a result, I hope we will see less use of these defensive measures.” Ryan noted that “the new 13D rules that were formally adopted were much more balanced than originally proposed and should not have much impact on activism,” and highlighted that the proposed rules on group activity were wisely not adopted, which “could have chilled the shareholder communications that are essential to corporate democracy.” To read Diligent’s Shareholder Activism Annual Review 2024, please click here.