Define: Divestment

Divestment
Divestment
Quick Summary of Divestment

Divestment refers to the process of selling off or getting rid of investments, such as stocks, bonds, or assets, typically for ethical or financial reasons. It is often used as a strategy to withdraw support or funding from companies or industries that are deemed harmful or unethical, such as those involved in fossil fuels, tobacco, or weapons manufacturing. Divestment can be driven by various motivations, including social responsibility, environmental concerns, or the desire to align investments with personal values.

Divestment FAQ'S

Divestment refers to the process of selling or disposing of assets, such as stocks, bonds, or investments, typically for ethical, social, or political reasons.

Yes, individuals and organisations have the freedom to divest from any asset they own, as long as it is legal and does not violate any contractual obligations.

In most cases, divesting from assets does not have any legal consequences. However, there may be tax implications or contractual obligations that need to be considered before divesting.

Yes, divestment is often used as a form of protest to express disagreement with certain practices or policies of companies or industries.

No, divestment is a voluntary action and cannot be enforced by law. It is a personal or organisational decision based on individual beliefs or values.

Generally, there are no legal restrictions on divestment. However, certain industries or assets may have specific regulations or restrictions that need to be considered.

Yes, divestment can potentially affect the value of assets, especially if a large number of investors or organisations divest from the same asset. This can lead to a decrease in demand and subsequently impact the market value.

There are no specific legal protections for individuals or organisations who choose to divest. However, they have the right to exercise their freedom of expression and make decisions based on their own beliefs or values.

Divestment is generally not considered a breach of fiduciary duty, as long as the decision is made in good faith and in the best interest of the individual or organisation.

Divestment itself does not have direct legal implications for companies or industries. However, if divestment leads to a significant decrease in investment or financial support, it may indirectly impact the operations or financial stability of the company or industry.

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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 13th April 2024.

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