CG_Wk2-Lec-28Oct2011

CG_Wk2-Lec-28Oct2011 - Corporate Governance Week 2 Lec The...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Corporate Governance Week 2 Lec 28/10/2011
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The Role of Owners (Specifically Institutional Investors in the Corporate Governance
Background image of page 2
3 Shareholders: Ownership What is a Shareholder in a Company? What is their position/role in the company?
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Shareholders: Ownership Shareholders are often referred to as the owners. Generally there are accepted principles that; Owner has the right to use property as wishes. Owner has the right to regulate anyone’s else use of property. Owner has the right to transfer the rights to property on whatever terms he wishes. Owner is responsible for making sure that his use of property does not damage others. So we can say Ownership is a combination of rights and responsibilities with respect to a specific property.
Background image of page 4
5 Shareholders: Ownership (Cont’d) Historically, ownership is one of the major issue in all eras in the world. Dispute over property, ownership- started right from the very beginning……. .Again human nature……. The modern western concept also follow it; as it emphasize on the ownership and believes that ownership can enhance the competitiveness of the companies, businesses……. . Islamic point of view……. . BS!!! Class!!!
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Shareholders: Ownership (Cont’d) Regarding the early concepts of corporations, as already discussed in the previous week lectures…… Initially corporations were formed by municipalities, universities etc. Later on, East India Company and Dutch companies. Later on the modern companies– multiple owners with different amount of shares to own it.
Background image of page 6
7 The Role of Institutional Investors in CG What is Institutional Investor (II)? BoD are not the only ppl with responsibility for ensuring the effective CG. Shareholder, especially institutional investors have an important role to play. Different type of main II found usually in all countries are: Pension funds Life insurance companies Financial institutions and mutual funds etc
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Definition Institutional Investors are: “Organizations which raise funds from individuals and corporation and invest, as principle in the stock markets, using professional management and operating within the constraints provided by their own articles and trust deeds and tax and legal considerations”. (Briston and Dobbins 1978)
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/07/2012 for the course FINANCE 245 taught by Professor Hameed during the Spring '12 term at IMSciences.

Page1 / 27

CG_Wk2-Lec-28Oct2011 - Corporate Governance Week 2 Lec The...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online