SHAREHOLDER ACTIVISM AND THE MANAGEMENT REVIEW MECHANISM: ANALYSING SECTION 195 OF MALAYSIA’S COMPANIES ACT 2016

Abstract

This paper evaluates the efficacy of section 195 of the Malaysian Companies Act 2016 as a mechanism for shareholder activism through a management review. It examines section 195 within the Malaysian corporate legal framework governing shareholder rights and corporate governance, analysing how the provision balances between board authority and shareholder influence by enabling shareholders to question, discuss, and make recommendations on management at meetings. The analysis also incorporates a comparative analysis, particularly with New Zealand’s management-review framework, to assess the prospects for meaningful dialogue and accountability. The conclusion offers considerations to enhance its practical utility and argues that the practical impact of section 195 depends on reforms that will make it more operable for minority and dissenting shareholders.