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Mendelow – high interest / high power

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Mendelow – high interest / high power

  • This topic has 2 replies, 2 voices, and was last updated 6 years ago by frry06.
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  • September 1, 2018 at 11:01 am #470631
    frry06
    Participant
    • Topics: 18
    • Replies: 67
    • ☆☆

    I had 2 questions regarding Mendelow´s matrix for Stakeholders

    1. Can you say that major shareholders are always high interest / high power, or can for example institutional investors be low interest?

    2. Are minor shareholders considered low power since they can’t really influence?

    thank you
    Fredrik

    September 1, 2018 at 2:00 pm #470649
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10589
    • ☆☆☆☆☆

    1 Obviously major share holders have hogh power (votes). However, whether they have high interest seems to be changing. At one time institutional shareholders were rather passi e, but increasingly they have become much more active eg coting agaimst directors’ salaries. Also ‘activist’ shareholders are becoming more common. They buy say 15% then make a lot of fuss about management decisions and perforamce.

    2 Individually minor shareholders are low power. They need a leader to form them into a force to be reckoned with.

    September 2, 2018 at 9:06 am #470771
    frry06
    Participant
    • Topics: 18
    • Replies: 67
    • ☆☆

    Great, thank you for the clarifications!

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