Corporate-Governance - Corporate Governance Corporate...

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Corporate Governance Corporate Governance Consists of: Who makes the decisions for the corporation and how the decision makers are selected It defines how corporate officials are held accountable for their actions and required to behave It seeks to align efficiency with other goals so management has the proper incentives to produce the "best" results for the firm Corporations are basically governed by state and not federal law This provides substantial legal autonomy These vary considerably: Delaware provides few restrictions on management and provides little protection for minority shareholders California policies favor shareholders and reduces management autonomy Stakeholders in corporate governance include shareholders, managers, financial institutions, suppliers, employees, government and communities Shareholders Are the legal owners of the company Most shareholders own only a tiny portion of the company's stock and have no real power over its operations. Concern is primarily with incomelincrease in value Boards of directors are elected by the shareholders and are to represent the shareholders' best interests.
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This note was uploaded on 03/05/2012 for the course LE 691 taught by Professor Staff during the Spring '08 term at Marshall.

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Corporate-Governance - Corporate Governance Corporate...

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