The increasing role professional service firms play in the reform of shareholders' meetings

Corporate governance has evolved considerably in all countries of the world, which shows through the Spanish case examined in this chapter. Their analysis shows how this evolution has modified the relationship between shareholders and firms, even in countries that are apparently less familiar with shareholder logic. Noting the rapid proliferation of associations for defending the economic interest of shareholders, they observed that many of the associations were just fronts for legal consulting. These associations promote shareholder activism because annual general meetings (AGMs) are considered to be simply "rubber stamp" meetings and do not play a real role in corporate governance. In positioning themselves as professional service firms, the associations are promoting and defending the interests of their members, and are serving as knowledge intermediaries in articulating the collective action of shareholders and promoting reform in the AGMs.