Download or read book Corporate Governance and Shareholder s Activism as a Tool for Protection of Shareholders Interest written by Dr. Manoj Kumar Sharma and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Company is a separate legal entity which has an individual legal existence from its members. In current times, the growth in industrial sector is led by corporate sector. In such a scenario, company, as a business entity, has become a popular form of business model wherein large numbers of persons contribute funds and join hands for a common objective. Contributor of funds i.e. shareholders may or may not be directly involved in the running of the business and decisions may be taken at his back by others subverting the interest of the shareholders. Hence, the protection of shareholder interests assumes importance especially when they are not involved in the day to day running of business activities of the entity. The level of protection available to shareholders is dependent upon the nature of company i.e. whether it is a public company or a private company. In case of private company, since lesser number of persons are involved and they are generally known to each other, the level of protection required is relatively less than the level of protection required in case of a public company where the shareholders come from various stratas of society, unknown to each other and they hardly participate in the day to day running of the business entity. The concept of shareholders' protection is no doubt applicable for all the companies but at the same time special protection is required in case of the public companies. The main aim of investment by a shareholder is to earn handsome returns on the invested amount. But many a times the promoters take undue benefits from the company and the investors/ shareholders are left empty handed. In India, the stock market is one of the easiest means of raising share capital for a company. In early 80's many private companies got themselves converted into public companies and raised million of rupees from the market. The innocent public was invited to invest their sweat earned money in the companies by alluring them good return in the form of dividends with ad-on benefits of the product booking. The invitation to public for investing in the shares of company was the first step by which the public interest was eventually welcomed by the companies. In early days the companies paid the good amount of dividend on shares but gradually, the promoters started making personal profits by taking hefty salaries, living lavish life on the cost of company and ignored the interest of minority shareholders. Especially in case of public companies, a small shareholder is not involved in daily activities. He is dependent on some other persons and authorities for the protection of his stake. These may include the governmental agencies and the persons appointed under the law. Towards this end, various provisions have been made in the Companies Act, 2013 including provisions for the office of directors for small shareholders, independent directors, directors, auditors, annual reporting, details of unpaid dividend amount on the website of the company, financial statements of the company etc. Various rights are conferred on shareholders to see whether the amount invested by them is utilised for the objects of the company. In this paper, an attempt has been made to explore statutory provisions incorporating good corporate governance practices and to analyse the role of good corporate governance practices and shareholders' activism as a tool for protection of shareholders' interest. The paper has been discussed under the following rubrics:• Corporate Governance• Corporate Governance in India and Companies Act, 2013• Shareholders' Activism • Concluding Observations Final version of paper is available at Taxmann. The citation is [2020] 119 taxmann.com 262 (Article).
Download or read book Shareholder Activism Handbook written by Jay W. Eisenhofer and published by Wolters Kluwer. This book was released on 2005-01-01 with total page 1458 pages. Available in PDF, EPUB and Kindle. Book excerpt: Shareholder Activism Handbook is the single most comprehensive guide on all matters relating to enforcing shareholders' rights. As shareholder activism becomes a more integral part of investing, the law continues to respond accordingly. Legislators
Download or read book Shareholder Activism and the Law written by Ekrem Solak and published by Routledge. This book was released on 2020-05-04 with total page 237 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a complete framework for contemporary shareholder activism and its implications for US corporate governance, which is based on director primacy theory. Under director primacy theory, shareholders do not wish to be involved in the management of the company; in the rare event that they wish to be involved, it is considered a transfer of power from the board of directors to shareholders, which in turn reduces the efficiency of centralised decision-making in public companies. However, this book demonstrates that shareholders do not use their power to transfer corporate control from the board to themselves, and that some form of shareholder activism is even collaborative, which is a new paradigm for US corporate governance. This book shows that while monitoring remains a key contribution of shareholders, they also bring new informational inputs to corporate decision-making that could not be obtained under the traditional board model. Accordingly, contemporary shareholder activism enhances the board’s decision-making and monitoring capacity, without undermining the economic value of the board's authority. Therefore, this book argues that the complete approach of contemporary shareholder activism should be accommodated into US corporate governance. In doing so, this book considers not only legal and regulatory developments in the wake of the 2007–2008 financial crisis, but also the governance developments through by-law amendments. Furthermore, the author makes several recommendations to soften the current director primacy model: establishing a level playing field for private ordering, adopting the proxy access default regime, the majority voting rule, the universal proxy rules, and enhancing the disclosure requirements of shareholders. The book will be of interest to academics and students of corporate governance, both in the US and internationally.
Download or read book Research Handbook on Shareholder Power written by Jennifer G. Hill and published by Edward Elgar Publishing. This book was released on 2015-07-31 with total page 638 pages. Available in PDF, EPUB and Kindle. Book excerpt: Much of the history of corporate law has concerned itself not with shareholder power, but rather with its absence. Recent shifts in capital market structure require a reassessment of the role and power of shareholders. These original, specially commiss
Download or read book The Oxford Handbook of Corporate Law and Governance written by Jeffrey Neil Gordon and published by Oxford University Press. This book was released on 2018 with total page 1217 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate law and governance are at the forefront of regulatory activities worldwide, and subject to increasing public attention in the wake of the Global Financial Crisis. Comprehensively referencing the key debates, the Handbook provides a much-needed framework for understanding the aims and methods of legal research in the field.
Download or read book Activist Shareholders in Corporate Governance written by Tim Bowley and published by Bloomsbury Publishing. This book was released on 2023-01-12 with total page 243 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book explores the regulatory challenges of public company shareholder activism. Around the world, policy makers, practitioners and academics debate how best to regulate shareholder activism. Using Australia as a case study, the book examines key issues raised by this debate. With a market structure and legal settings that are conducive to activism, Australia makes an ideal case study and provides a fresh comparative perspective on the regulatory debate about shareholder activism, which tends to be dominated by US-focused analysis and commentary. The book presents empirical evidence which reveals that Australian activism is a significant and multifaceted phenomenon, undertaken by different types of activists pursuing varying strategies and supported by a range of complementary market developments. The book uses this evidence to develop comparative insights and explore internationally topical issues, including: - activists' willingness to use interventionist governance rights; - the role of intermediaries such as proxy advisers in facilitating activism; - institutional investor stewardship; and - the risks of collective shareholder activism. This book provides an important comparative perspective on the topic of shareholder activism. It is an essential resource for policy makers, practitioners and academics interested in the regulatory implications of shareholder activism.
Download or read book The Foundations and Anatomy of Shareholder Activism written by Iris H-Y Chiu and published by Bloomsbury Publishing. This book was released on 2010-10-12 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Foundations and Anatomy of Shareholder Activism examines the landscape of contemporary shareholder activism in the UK. The book focuses on minority shareholder activism in publicly listed companies. It argues that contemporary shareholder activism in the UK is dominated by two groups; one, the institutional shareholders whose shareholder activism is largely seen as a driving force for good corporate governance, and two, the hedge funds whose shareholder activism is based on value extraction and exit. The book provides a detailed examination of both types of shareholder activism, and discusses critically the nature of, motivations for and consequences following both types of shareholder activism. The book then locates both types of shareholder activism in the theory of the company and the fabric of company law, and argues that institutional shareholder activism based on exercising a voice at general meetings is well supported in theory and law. The call for institutions to engage in more informal forms of activism in the name of 'stewardship' may bring about challenges to the current patterns of activism that institutions engage in. The book argues, however, that a more cautious view of hedge fund activism and the pattern of value extraction and exit should be taken. More empirical evidence is likely to be necessary, however, to weigh up the long terms benefits and costs of hedge fund activism.
Download or read book Shareholder Driven Corporate Governance written by Anita Anand and published by . This book was released on 2018 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines prevailing conceptions of the corporation in light of developments in corporate governance since the introduction of the United States Sarbanes-Oxley Act in 2002 and the global financial crisis (GFC) of 2008. In particular, its purpose is to explore the perplexing question of the extent to which corporations are beholden to the will of their shareholders. Thus, this book takes into account the practical realities that public corporations face, including increasingly complex legal regimes, shareholder activists and volatile capital markets. In recent years, shareholders have asserted more and more control over public corporations, no longer content to play the part of the passive owner. Perhaps in response to this pressure, legislators and regulators have grappled with the question of what protections shareholders should be afforded, particularly in the decade since the GFC. This shift in attitude by investors and regulators alike invites scholars to revisit the nature of the relationship between shareholder and corporation, and to ask what role the law should play in affirming shareholders' ability to influence corporate governance.This book introduces a new concept called "Shareholder-driven Corporate Governance," or SCG. This term refers to an approach to understanding the corporation that seeks to protect shareholders' interests while also affirming their involvement in governance. It refers to both actual and potential governance strategies. SCG is a normative term in the sense that it presents a goal to which lawmakers (not to mention investors) may aspire. It is also a descriptive term, explaining the ongoing phenomenon of a shifting balance of power that increasingly accommodates shareholder participation in corporate decision-making. In exploring both positive questions and normative, aspirational issues relating to SCG, this book examines the rise of shareholder activism across multiple jurisdictions including the United States, United Kingdom and Canada. In these jurisdictions, members of boards of directors have fiduciary duties, but the following questions arise: how should these duties be discharged in an age of shareholder activism? Does SCG change historical and current analyses of boards' fiduciary duties? Should SCG impact law reform efforts? These broad questions lead to a consideration of three themes, which illustrate the importance of SCG and which are at the heart of this re-examination.
Download or read book The Power of Shareholder Activism A Force for Change in Corporate Governance written by and published by GRIN Verlag. This book was released on 2024-02-09 with total page 77 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2024 in the subject Business economics - Investment and Finance, grade: 1.0, University of Rome "La Sapienza" (Economics), language: English, abstract: This master thesis endeavors to scrutinize the efficacy of shareholder activism as a governance mechanism. Drawing upon existing research, it seeks to unravel the intricacies of this phenomenon, spanning its definitions, historical evolution, and diverse manifestations. The thesis will delve into the challenges posed by active shareholders, including the free rider problem, agency conflicts, and the contentious realm of proxy fights. Additionally, it will conduct a comprehensive exploration of the motivations driving shareholder activism, encompassing economic incentives, moral imperatives, and the burgeoning influence of Environmental, Social, and Governance (ESG) considerations. Real-world case studies, such as the Shell vs. ClientEarth dispute, will be dissected to illuminate the practical implications of shareholder activism. Furthermore, the dynamics of investor relations, the tactics deployed by activist shareholders, and their tangible impact on corporate governance will be rigorously examined. In conclusion, this thesis endeavors to offer illuminating insights into the intricate interplay of power, responsibility, and influence within modern corporate governance. As companies navigate the evolving nexus of profit-making and social responsibility, understanding the role and impact of active shareholders assumes paramount importance. Through rigorous analysis and nuanced interpretation, this thesis aims to contribute to a deeper comprehension of the multifaceted phenomenon of shareholder activism.
Download or read book Shareholder Activism written by Nils Krause and published by Walter de Gruyter. This book was released on 2017-03-20 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years shareholder activism has increased, becoming a more mainstream way of pressuring companies to effect certain changes to maximize shareholder value. The current economic market and the resulting scrutiny surrounding management's ability to effectively lead a company have resulted in an increasing awareness of corporate governance issues. As more activists make their agendas publicy known, management and corporate advisors, as well as shareholders, are becoming better equipped to handle such challenges.
Download or read book Shareholder driven Corporate Governance written by Anita Anand and published by Oxford University Press. This book was released on 2020-02-01 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt: How effectively can governing mechanisms forged before the surge of activist investment continue to protect shareholders and efficiently order capital markets? This is a pressing question for scholars and practitioners of corporate law, as well as for market participants generally. In order to illuminate the extent to which the growing trend of shareholder activism calls for a new understanding of the kind of shareholder-corporate relations the law should facilitate, this book introduces the concept of shareholder-driven corporate governance. This concept refers to the evident phenomenon of shareholder involvement in corporate governance and offers a normative endorsement of this development. In order to secure the benefits of investors' increasing involvement in corporate affairs, regulatory regimes must grapple with a number of considerations. This book is based on the idea that shareholder corporate governance is a welcome development, but that it does not come without regulatory challenges. For one, it requires rejecting the idea that well-ordered capital markets can be achieved through corporate law which is subservient to private ordering. The mandatory character of, for example, securities regulation is vital to fostering shareholder involvement in corporate affairs. Defenders of shareholder corporate governance must also confront the matter of "wolf packs," or loosely formed bands of investors who defy existing regulatory categories but nonetheless exert collective influence. Regulation that is sensitive to both the inadequacies of past approaches to corporate-shareholder relations and the novel challenges posed by increasing shareholder activism will be able to harness activism, allowing capital markets to flourish.
Download or read book Institutional Shareholder Activism written by Michael J. Rubach and published by Taylor & Francis. This book was released on 1999 with total page 202 pages. Available in PDF, EPUB and Kindle. Book excerpt: First Published in 2000. Routledge is an imprint of Taylor & Francis, an informa company.
Download or read book Shareholder Activism written by H. Rho and published by Springer. This book was released on 2006-12-06 with total page 183 pages. Available in PDF, EPUB and Kindle. Book excerpt: Shareholder activism in Korea, led by a civil society organization, has been commended by Western economists. How could activism led by such an organization grow and thrive to become the success story of corporate governance reform in developing countries? This book examines this phenomenon using social movement theory to explain.
Download or read book Shareholder Democracy written by Lisa M. Fairfax and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers a succinct, practical guide for understanding what some have referred to as shareholder democracy--efforts to facilitate and increase shareholder voting power within the corporation. In the past few years there has been a surge in shareholder activism that has had a profound impact on the corporation. Shareholders and other activists have sought to increase shareholders' voting power within the corporation based largely on the belief that increasing shareholder power will increase director and officer accountability, thereby helping to curb corporate misconduct and improve corporate performance. However, there is intense debate regarding whether increased shareholder power can achieve such objectives and whether increased shareholder power will negatively impact the corporation. This book is the first to provide a concise, but comprehensive look at the various ways in which shareholders have sought to enhance their voting power and influence within the corporation. In addition to examining shareholder activism, this book highlights and analyzes the debate regarding the propriety of increased shareholder power. This book also analyzes the impact of recent developments aimed at facilitating shareholder power such as majority voting, say on pay, and proxy access. This book will serve as a useful tool not only for those who desire a straight-forward analysis of shareholder rights and activism, but also for those seeking a reference guide on an issue of growing importance to corporate law and corporate governance.
Download or read book Some are More Equal written by Donald Nordberg and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Shareholder activism is an exercise of power, sometime benign, sometimes threatening to the interests of corporate management, boards and other shareholders. The complexity of these combinations helps to understand how difficult it is for directors to operate in shareholders' interest. What we see, particularly in relation to the growth of hedge-fund activism, is greater dispersion of shareholder interests and growing questions about the legitimacy of how those interests are acted out in the political landscape of corporation governance. This paper offers a framework to examine the stance that shareholders take when exercising - or not exercising - their power. Anticipating the expression of shareholder power involves assessing their intentions along three dimensions: their attitude towards an individual stock (buy-hold-sell), their approach to activism (docile, "walkers", or activist) and their investment horizons (long-term, short-term, or ones it calls "perverse", where the economic interest of the shareholder doesn't coincide with its holdings).
Download or read book Shareholder Activism in the UK written by Posi Olatubosun and published by De Gruyter Oldenbourg. This book was released on 2020-06 with total page 250 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides researchers with vital information that will deepen their understanding of UK shareholder activism and ownership discourse based on research carried out over a six-year period proceeding from reviews of archival resources, interviews with asset owners such as hedge funds, sovereign wealth funds, pension funds, mutual funds and individual investors, as well as proxy advisors.
Download or read book Hedge Fund Activism written by Alon Brav and published by Now Publishers Inc. This book was released on 2010 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hedge Fund Activism begins with a brief outline of the research literature and describes datasets on hedge fund activism.
