• anonymous
What happens if the chairman of the Board of the directors is also the CEO of the company and if he also owns a majority stake in the company,is there a conflict of management and shareholders interest ? are the interest of other shareholders protected?
  • Stacey Warren - Expert
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  • schrodinger
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  • anonymous
Yes, there maybe a conflict of interest between equity holders. In this case, the chairman/CEO/majority shareholder may expropriate wealth from other minor shareholders. It is hard to protect the smaller shareholders because they cannot win based on shares (e.g., proxy fight).

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