Shareholder activism is often associated with campaigns
involving large, high-profile issuers. Yet as the Financial
Times reports in a recent article, referencing global data
from Activist Insight, there has been a slight upswing this year in
activism against relatively small issuers.
The data show that from the start of year to the end of July, 61
"micro-cap" companies—that is, companies with
market capitalizations ranging from USD $50m to USD
$250m—have been targeted by activist funds. 56 micro-cap
issuers were targeted over the same period in 2015. In contrast,
activism against the largest issuers has experienced a slight
slowdown, with 16 companies with market capitalizations over $10b
being targeted, compared with 22 over the same period last year.
According to the figures, activism against companies worth less
than $50m has held steady.
As the article suggests, there are several possible reasons why
smaller companies have been gaining increased activist attention.
campaigns involving smaller issuers
generally demand less financial wherewithal, which may prove
especially enticing to smaller funds who are newer to activist
increased M&A opportunities when
smaller companies are involved
the potentially increased ability of
activists to add strategic value at smaller companies, who may not
necessarily have access to the same kinds of legal, financial and
strategic advice as larger companies
The author would like to thank Joe Bricker, articling
student, for his assistance in preparing this legal
About Norton Rose Fulbright Canada LLP
Norton Rose Fulbright is a global law firm. We provide the
world's preeminent corporations and financial institutions with
a full business law service. We have 3800 lawyers and other legal
staff based in more than 50 cities across Europe, the United
States, Canada, Latin America, Asia, Australia, Africa, the Middle
East and Central Asia.
Recognized for our industry focus, we are strong across all the
key industry sectors: financial institutions; energy;
infrastructure, mining and commodities; transport; technology and
innovation; and life sciences and healthcare.
Wherever we are, we operate in accordance with our global
business principles of quality, unity and integrity. We aim to
provide the highest possible standard of legal service in each of
our offices and to maintain that level of quality at every point of
As a construction company that actively bids and works on larger infrastructure projects, you will likely be required to provide a signed certification in response to future Requests for Qualifications.
On November 14, 2016, the Securities and Exchange Commission ("SEC") announced an award of more than $20 million to a whistleblower who promptly provided the regulator with valuable information that allowed the SEC to commence an enforcement action against the wrongdoers before they could squander the money.
In the recent decision, 3716724 Canada Inc. v Carleton Condominium Corporation No. 375, the Ontario Court of Appeal found that the "business judgment rule" applies to decisions of boards of condominium corporations.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).