Stock holders are in a fighting mood. Hedge funds, trade unions, and shareholder activists are putting US corporations under increasing heat, according to the latest research from proxy firm Georgeson Shareholder.

What's interesting in the report is that there's been a decline in governance resolutions over the last year (375 versus 414 in 2004) but activism is increasing. Perhaps more than ever before. It signals a change in strategy by shareholders. Instead of focusing on how boards of directors are using poison pills and stock options, for example, they are looking more at the way directors are getting elected. The number of proxy contests declined from 27 in 2004 to 24 in 2005 but that reflects management's desire to reach settlements and avoid full-scale battles. At the same time, the number of activist campaigns where dissidents tried influencing results without filing a proxy increased from 13 to 21.

Another change in strategy is reflected in the increasing clout of hedge funds and aribitrageurs, disproprortionate to their numbers in M&A deals. A different strategy because they can have a different agenda to retail shareholders. Some of the battles with hedge funds now under way include the biffo at Time Warner and McDonalds Corp . All round, it's had mixed results .

Sure the fight has left both sides with sore heads, but as the Financial Times points out, it's all part of the democratic process. Democracy can get messy, but it's a healthy thing too.