Threat of takeover activism is high outsider

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Unformatted text preview: as no majority voting power. AGMs: Annual meetings between shareholders and directors. Proxy contests usually occur here. Free ­rider problem: Only one shareholder does the work, but it benefits all shareholders. Corporate Governance Funds: Using investor funds to get capital gain from shareholder activism. Honeywell: Shareholders forced restructuring. Rejected anti ­activist changes at AGM. Week 11: International Corporate Governance • • • • • • Market ­centred System: Monitoring from stock market. Shareholder protection. Threat of takeover, activism is high. “Outsider” Stakeholder ­centred system: Stakeholders are shareholders. Activism is low. Low...
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This document was uploaded on 02/27/2014 for the course FINS 1613 at University of New South Wales.

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