Question

Shareholders have only limited power to make management decisions beyond their ability to elect and remove directors.

Answer 1

Proponents of increased shareholder participation argue that, due to the conflicts of interest that arise in many management decisions, shareholders should have complete decision-making power. According to this viewpoint, when shareholders have the authority to make decisions, they delegate decisions on matters about which they lack sufficient information.

What does the majority shareholders 'reserved power extend to?

Furthermore, the Court was inclined (but did not have to reach a conclusion) that the majority shareholders' reserved power could potentially extend more broadly to taking substantive management decisions that the board is unable or unwilling to take, even if the board could be reactivated by the appointment of new or replacement directors.

What are shareholders 'rights?

However, in North America, shareholders' rights are usually standard when purchasing any common stock. These rights are critical for shielding shareholders from bad management.

What exactly is a shareholder?

A shareholder is a person, company, or organization that owns stock in a particular company. To be considered a partial owner, a shareholder must own at least one share of a company's stock or mutual fund. Dividends are usually paid to shareholders if the company does well and succeeds.

Learn more about shareholders:

brainly.com/question/15964520

#SPJ4