anonymous
  • 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?
Finance
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anonymous
  • 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?
Finance
jamiebookeater
  • jamiebookeater
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At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.

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anonymous
  • 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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