Political Science 2211E Lecture Notes - Lecture 7: Accredited Investor, Old Boys & Old Girls Club, Arbitrage
11 Mar 2016
School
Department
Course
Professor
Document Summary
Lecture 7 recent trends in corporate governance. The process by which a company is controlled or governed: a company"s system of internal governance, determines overall strategic direcion, establishes roles, rights, and responsibiliies of the corporaion"s stakeholder groups. Owners, board of directors, managers, and employees. Stockholders are the legal owners of a corporaion: individuals and insituions can be shareholders, insituions owned roughly 75% of stocks within usa. Rights of stockholders: to receive dividends, to vote (board of directors, major mergers, etc. , receive annual reports, bring shareholder suits, sell their own shares. An elected group of individuals who have a duty to establish corporate objecives, develop broad policies, and select top-level personnel to carry out these objecives and policies: govern and oversee management, protect the interests of shareholders. Most major irms have an average of 10 directors, majority are outside directors (8 or so) Backgrounds: ceos of other corporaions, shareholders, skilled professionals. Demographics: most directors are white males in their 60s.
