Summary
This joint research study between SUSS, SIT and the Securities Investors Association (Singapore) examined how investor rights and behaviour in Singapore have evolved since 2014, and provided recommendations to improve investor protection and encourage shareholder activism. In the survey of 197 investors, one important finding was that 37% experienced difficulties in exercising their rights as investors. This suggests that existing investor protection mechanisms may not sufficiently address the needs of all investors.
Key Points in the Report
Of those investors who reported facing difficulties:
- 41% felt that their voices were not heard in corporate decision-making matters;
- 24% faced challenges in accessing financial reports and disclosures;
- 22% encountered difficulties in voting at shareholder meetings;
- 13% experienced delays in receiving dividends.
The study recommended the following:
- Enhance the role of public enforcement for investor compensation, with reference to Hong Kong and Australia;
- Lower shareholding thresholds for minority shareholders to requisition a general meeting and propose resolutions;
- Introduce requirements for companies to explain actions taken in the event of significant shareholder dissent;
- Enhance shareholders’ rights to access information;
- Rethink the implementation of a two-tier shareholders’ vote to approve independent directors.
Final report linked below.
Co-Principal Investigators:
Lecturer, School of Law, Singapore University of Social Sciences;
Research Associate, Centre for Business Research, Judge Business School, University of Cambridge
Associate Professor of Accounting, Singapore Institute of Technology
Senior Lecturer, School of Business, Singapore University of Social Sciences
