UGANDA Law and Practice Contributed by: Arnold Lule Sekiwano, Ritah Nakalema, Evelyn Maria Nakigudde and Collette Melvina Awano, Engoru, Mutebi Advocates
11.2 Aims of Activists The focus of activists has been on corporate govern - ance, management changes and company strategy. There is also increasing interest in ESG-related con - cerns. The Bank of Uganda has launched an ESG framework for the banking industry to guide finan - cial institutions in adopting sustainability practices, thereby supporting the country’s broader sustainable development goals. 11.3 Interference With Completion It is not common for activists to seek to interfere with the completion of announced transactions in Uganda.
The CMA Corporate Governance Guidelines encour - age a constructive approach to shareholder activism, emphasising the importance of equitable treatment for all shareholders, including minority and foreign inves - tors. Boards of directors are responsible for upholding this principle, fostering open dialogue and active par - ticipation between companies and their shareholders. In some cases, shareholders are represented as an interest group on the board and are typically awarded a board seat. An example of shareholder activism is seen in companies where the National Society Secu - rity Fund, a provident fund that covers all employees in the private sector, has acquired an equity stake. In such companies, it common for the Fund to acquire a board seat. There are no examples of transactions which have been aborted due to shareholder activism.
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