The Ethics of Dealing with Minority Shareholders Financial Essay
1 Introduction. The governance role of minority shareholders has been an important research question in the international corporate governance literature Chen et al. 2013 Ezzamel et al. 2020 Hamdani and Yafeh, 2013 Kandel et al. 2011. In recent decades, activist minority shareholders have worked to shift corporate decisions . Furthermore, their participation in corporate governance can mitigate the agency problem between controlling shareholders and minority shareholders by improving supervision of management and controlling shareholders, thereby motivating them to pursue long-term goals. interests that are potentially beneficial to all shareholders, and some of these include: Rights to access lists of shareholder ownership and percentages. Voting rights to appoint directors and officers. Preferential right to purchase new shares, including pre-emptive right on existing shares. A shotgun clause that guarantees minority rights to buy or sell shares. Piggyback rights must get a majority vote. Once we embrace this definition, maximizing shareholder value may well be an ethical responsibility. Vermaelen takes the position that a company should be regarded as a junction of contracts between different stakeholders. All contracts have explicit and implicit features. For example, the debt contract has many explicit: Unlike Kenya Power's timid minority shareholders, a growing number of NSE-listed companies are feeling the heat of an alert group eager to have more say in the corporate world. management. For example, NSE-listed agricultural company Kakuzi was recently forced to make changes to its governance in the wake of human rights allegations. Corporate social responsibility, often abbreviated as CSR, is an initiative by a company to assess and take responsibility for the effects of the company. in the field of environmental and social well-being. The condition. Free Essays Finance Financial News Minority Shareholders and Company Background Concho Resources Inc. Essay on Minority Shareholders and Company Background Concho Resources Inc. Download paper. Essay. Last update: Views: 103. Download. The shareholders have the right to call a poll to vote on a resolution. More If a general meeting must be convened and held at shorter notice than the statutory term or the term stated in the articles of association, the shareholders can exercise their rights and prevent the meeting from being held at short notice. A minimal PDF application, Dealing with the Leviathan: Minority shareholders in state-owned enterprises - evidence from Italy, The relationship between large blockholders and minorities is a notorious one. The conflicts of interest between controlling shareholders and minority shareholders are further exacerbated in China because the ownership structure of Chinese listed companies is also split into non-tradable shares held by controlling shareholders and tradable shares held by minority shareholders, although both types of shares have the same cash. and minority shareholders can assert their identity as “shareholders” by directly participating in decision-making, thereby paying more attention to the company's behavior Wang and Qiu, 2023. Faced with managerial opportunism, minority shareholders are more likely to participate in dialogue with management, ask questions on social media. The seven year old.