What shareholders really mean when they vote ‘No’
Meetings of shareholders are sometimes reminiscent of parliaments in authoritarian states. Proposals of the company’s senior management are usually adopted without too much critical comment or opposing votes. Hans van Oosterhout, ERIM Fellow and Professor Corporate Governance at Rotterdam School of Management at Erasmus University, discovered that the few shareholders who do vote against management proposals often do this to express their dissatisfaction to the management of the company. Precisely what those dissatisfied ‘No’ voters want to make clear is related to the corporate governance model customary in the country, the research showed.