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Preferred stock – owners of preferred stock have first claim to a company’s profits and assets. Redeemable stock allows a company to repurchase it at some point, whereas convertible stock enables stockholders to exchange preferred stock for common stock.
So as long as the shareholders concur that the management (agent) are performing bad they can select a new board of directors which can then appoint a new management team.
In real life, actually contested board elections are hard to find.
Board candidates are generally chosen by insiders or by the board of the directors themselves.
In almost all the countries in the world, company managers and boards of directors have a fiduciary responsibility to carry on the company in the interests of its stockholders.
Martin Whitman argued that- …it can safely be stated that there does not exist any publicly traded company where management works exclusively in the best interests of OPMI [Outside Passive Minority Investor] stockholders.