shareholder power

Power wielded by shareholders in a company. In reality, despite the rights that shareholders have, such as the right to attend the annual general meeting (AGM) and to vote on new directors, most shareholders have very little power. Institutional shareholders tend to wield more power than other shareholders because of the ability they have to influence the financial markets' perception of a company. Other shareholders can, and do, on rare occasions, band together to force a change in company policy.