Shareholders Right And Corporate Governance

Question 1

Legal rights of shareholders

Answer 1

1. Rights to receive dividend
2. To vote:
   - merger and acquisition
   - charters and bylaws
   - shareholders resolution
   - board of directions
3. Receive financial statements
4. Bring lawsuit against officers or the company
5. Sell the stock

Question 2

Institutional investors

Answer 2

1. Pension
2. Mutual funds
3. University endowments
4. Insurance

Question 3

Proxy access

Answer 3

Increase demand the rights to elect their own candidates

Question 4

To vote by absentee ballot is called

Answer 4

Proxy

Question 5

Shareholders’ lawsuit

Answer 5

1. Abuse of insider trading
2. Inadequate price (accept too low, reject good price)
3. Timeliness of material information

Question 6

Principle of good governance

Answer 6

1. Most outside directors
2. Appoint independent lead director
3. Tie directors remuneration with corporate performance
4. Review board performance regularly
5. More open elections

Question 7

Duties of board of directors

Answer 7

1. Set broad policies
2. Review management performance
3. Protect shareholders interest
4. Select top personnel executives
5. Meet in full session 6 times a year

Question 8

Who are board of directors?

Answer 8

Elected group of individuals who have a legal duty to establish corporate objectives

Question 9

Corporate governance

Answer 9

Process by which company is controlled or governed that determine overall strategic direction and balance divergent interest