Shareholders - 2 types
Small investors with minimal shareholdings &
Institutional investors- Hedge funds, Insurance Companies
Syllabus B3a
Role of Institutional Investors 1 / 9
Shareholders - 2 types
Small investors with minimal shareholdings &
Institutional investors- Hedge funds, Insurance Companies
Agency Costs to the Shareholders
Attending meetings, studying company results and
general contact with the company
Agency Costs to the Shareholders
Attending meetings, studying company results and
general contact with the company
Shareholders - their link to CG
Why do shareholders get involved in company affairs......
Shareholders - their link to CG
Why do shareholders get involved in company affairs......
Shareholders - their link to CG
Institutional investors hold large shareholdings and thus can
exert more power!!!!!!
Shareholders - their link to CG
Institutional investors hold large shareholdings and thus can
exert more power!!!!!!
Shareholders - their link to CG
Shareholders will step in and get involved in company affairs for
the following reasons..........
Shareholders - their link to CG
Shareholders will step in and get involved in company affairs for
the following reasons..........
Shareholders - their link to CG
1. Concerns over strategic direction of the company
2. Consistent under-performance
Shareholders - their link to CG
1. Concerns over strategic direction of the company
2. Consistent under-performance
Shareholders - their link to CG
3. NED's not performing their duties properly
4. Internal controls failing
Shareholders - their link to CG
3. NED's not performing their duties properly
4. Internal controls failing
Shareholders - their link to CG
5. Companies failure to comply with:-
Regulatory, Legal and Accounting responsibilities
Shareholders - their link to CG
5. Companies failure to comply with:-
Regulatory, Legal and Accounting responsibilities
Shareholders - their link to CG
6. Are the directors paying themselves too much?
7. Evidence of a poor attitude from the co. towards CSR
Shareholders - their link to CG
6. Are the directors paying themselves too much?
7. Evidence of a poor attitude from the co. towards CSR
Shareholders - their link to CG
In summation - all reasons why the shareholders get involved
have a direct link back to the CG of a Co.
Shareholders - their link to CG
In summation - all reasons why the shareholders get involved
have a direct link back to the CG of a Co.
Stock Exchange
Responsible for:-
Rules for companies looking to list on the Stock Exchange
Additional requirements above existing company law!!
Stock Exchange
Responsible for:-
Rules for companies looking to list on the Stock Exchange
Additional requirements above existing company law!!
Auditors/Regulators
Auditors
The audit itself is a very sound form of good CG.
Auditors/Regulators
Auditors
The audit itself is a very sound form of good CG.
Auditors/Regulators
Regulators: - will be inclusive of government agencies
They control and manage any risk of monopoly within markets and
supply the basic need of water,electricity etc etc
Auditors/Regulators
Regulators: - will be inclusive of government agencies
They control and manage any risk of monopoly within markets and
supply the basic need of water,electricity etc etc