Shareholder Essays (Examples)

Abuse of power also adds to the list.
In regard to the remedies that may be used in taking care of unfair prejudice. It is therefore evident that the Companies Act 2006 has several changes that are relevant to the protection of the shareholder. The most relevant parts being sections 994 and 996

Creditor protection

Creditor protection is noted by Bachner (2009) as an important element of every company. The changes contained in the Companies Act 2006 are noted to affect the area of creditor protection within the UK companies.

The UK's Department of Business Innovations and Skills (2007) indicated that the UK government via BE had resorted to amending the Companies Act 1985 as well as the one for 2006 in order to reflect the elements of creditor protection of the new Directive. The particular focus was on shifting the burden of proof from the firms to the creditor whenever they are…

Shareholder Capitalism as a Model for Economic Development
The idea that shareholder capitalism may serve as a powerful type of economic progression model has been made practical with the growth of credit along with a large marginal tax that delivers a security net for Americans, but additionally has its own limits.

Shareholder capitalism, and also the American structure of corporate governance which can serve as its main-operating-system, continues to be held out like a replica of economic growth and development for up and coming markets within the last era. This document reveals the roots of the model inside the U.S. And argues that this model has already established, in the best scenario, mixed success beyond the U.S. borders. Furthermore, the after-effects in the two financial bubbles in the early Twenty-first century shows that shareholder capitalism might not function as publicized even inside the U.S. During the economic crisis, sensible policymakers will use…

In other respects, however, the evidence does not readily conform to theoretical predictions. For example, if gross job turnover is taken as a rough proxy for labor market flexibility -- and since stringent EPL reduces both hiring and firing -- it is quite surprising to find that job turnover rates are very loosely related to EPL rankings. Most remarkably, not only are the estimates for Italy and France, at 21 and 24 per cent respectively, very high in absolute terms (one in every five jobs is either created or destroyed each year), but they are also extremely close to the estimates for the United States and Canada despite the much heavier regulation of dismissals in the European labor markets." (Bertola, Boeri, & Cazes, 2000)
Once the company settled into the Canadian market they faced the new challenges regarding labor. The Canadian business philosophy continued to be pro-union. In Canada, Wal-Mart…

Shareholder
Info: Donna formed a corporation several years ago by issuing 500 shares of stock. There are 10 shareholders with the smallest shareholder owning 25 shares and Donna holding the most at 100 shares. The corporation needs additional cash, but the current shareholders do not wish to have any additional shareholders. What are their options and what additional factors should the current shareholders consider in raising the additional cash? What can Donna do to add additional shareholders, if anything?

There are various ways for Donna's corporation to raise additional capital. One is through debt financing while the other one is through equity financing. Debt financing involves bonds, bills, loans, and notes while equity financing involves selling company stock to other investors. Each approach has its own advantages and disadvantages.

Debt financing aims to raise additional cash by borrowing money, usually with interest. The advantage is that business ownership is not affected, and company's…

Shareholders
Future

Chester Corporation is dedicated to focus its efforts to capitalize on future opportunities and continuous growth. For the time being, most of the company's earnings are going to be plowed back into the company. However, we expect to enjoy growth that will allow us to increase our dividend to $5 per share by the 2030 fiscal year. Suffice to say, such growth would also imply an increase in stock price as well.

There are several opportunities that will be leveraged to help fuel this growth. One of these is to focus on customer service. By increasing the customer awareness within the organization, we believe that we can extract more revenue from our existing customers, fuelling internal growth. In addition, as we build our customer service reputation, we feel that will attract new customers as customer service is one of the industry's key success factors. Another opportunity that we wish to leverage…

The only ones who will gain from these measures are the CEOs, managers, and Board of Directors. Shareholders will suffer through the actions of the few. Due diligence will be rewarded with dwindling returns for the shareholder.
Does Shareholder Value Matter Any More?

The old theory was that if banks took care of shareholder value, everything else would fall into place (Nocera 2009). Shareholders were considered one of the most important responsibilities that executives had. This was how it used to be. However, recent events make it apparent that creating shareholder value has a downside as well. As managers struggle to increase shareholder value, they ignore many business basics. They increased value has not real foundation and soon, as the company collapses under the debt loads used to create the perceived value, it is shareholders that have he most to lose (Nocera 2009).

Lately, the focus has been on getting the banks…

Shareholder Value, Branding, and Value-Based Marketing
Madden, Fehle and Fournier (2006) argue that the creation of shareholder value through the use of branding can be empirically demonstrated. Prior to their study, marketing executives lacked the ability to establish the value of branding in unequivocal financial terms, placing them at a disadvantage. Finance researchers have been primarily interested in the creation of shareholder value, while marketing research has focused on the creation of customer value. Given that senior management has been more aligned with financial metrics, shareholder value assumed a higher priority than customer value.

Madden et al. used a financial analysis tool to research the relationship between branding and shareholder value. They selected the Fama-French model to investigate the effects of branding on a stock's performance. They determined a portfolio of firms with established brand value using Interbrand brand valuation estimates. They then built a portfolio that included the world's most valued…

S. And cultural similarities. The ritish market, for the beginning, may offer a potential target for Home Depot stores.
In terms of competitors, Lowe is the strongest competitor on the market. With a revenue growth of 16.4%, compared to Home Depot's 11.3%, Lowe is a competitor to be taken into consideration. On the other hand, it is, in my opinion, less than likely that the antitrust laws in the United States will allow these two giants to merge, given the fact that the joint company is likely to hold a monopoly in the industry. As such, an acquisition of the company's main competitor, Lowe, is only likely to bring about additional problems for Home Depot.

The question is how can Home Depot enhance its value and be more competitive on the market. As presented previously, first and foremost it can diversify and improve its post-sale set of services, to include quality and…

The main fundamentals behind this growth strategy were favorably exploited by Symantec's CEOs in the recent years. For example, answering the question 'Why is Symantec's strategy to become a full service security company while others in the market are just focusing on single areas for future development, such as antivirus?' Of a journalist, Symantec's chairman and CEO John W. Thompson, answered: 'Look at some of the market leaders from a few years ago which were focused on a single technology. Today they find their businesses stalled. Companies that specialise in firewalls today face low growth and few new customers. If you close your eyes to the emerging threat landscape your ability to service customers is limited. The nature of today's threats means that antivirus technology alone is not enough; you need a combination of tightly integrated technologies operating at each tier of the network'. Another fundamentals behind this strategy can…

Communities are looking for social expenditures by the business to benefit the community (hospitals, stable employment, donations, and investments). Managers face a challenge in making such crucial decisions. Therefore, corporations must be clear on how to make tradeoffs between these often inconsistent and conflicting interests from different stakeholders.
In the Shareholder Wealth Maximization model, three types of maximization exist in a company. They include total stakeholder maximization, shareholder maximization and stakeholder-owner maximization. Shareholder maximization is based on a single stakeholder maximization whereby the sole business owner is taken into account during maximization. The stakeholder owner maximization focuses on desired interests and resources important for shareholders commitment. It is crucial for the overall success of the business venture (Tricker, 2012).

Of all the three-wealth maximization of companies, shareholder wealth maximization is more significant than the other two. While most businesses presume total stakeholder maximization to be the most significant role, it is…

I agree with your assessment and conclusions regarding shareholder wealth with the context of ethics. I agree with you that the primary role of management is the maximize the wealth of those who provided management with capital. In this instance, management should generate the highest returns relative to the risk incurred. In addition, management must do this from an ethical perspective being sure to adhere to applicable rules (Sliman, 2017). Lately, Im also seeing companies take a much more proactive approach to social justice issues and causes around the country. Recently, Major League Baseball removed the all-star game from Atlanta to protest voting rights restrictions from Republican legislatures. We are also seeing companies become much more outspoken about racial inequality as well. I believe many of the issues can either maximize or lower shareholder wealth depending on the company and the stance that they are taking on a particular issue.…

Publicly Traded Firm: WalmartWalmart proudly has built its brand image and value proposition on offering the lowest prices to consumers at all times. The downside to this boast is that it has come under fire for not paying employees a fair wage, and not offering its workers adequate benefits. It must, to answer such concerns, find a way to ensure it can still offer low prices using its business model without charging membership fees like its rival Costco (which offers higher wages to its employees than Walmart). Walmart recently raised its hourly minimum wage rate to $11, and in response to concerns about inadequate healthcare, has now begun to offer free health screening events and fitness center passes to employees (Chochrek, 2020). But critics will likely contend that such efforts seem anemic, in light of the massive profits Walmart currently enjoys as an organization.Walmart has also made efforts to prohibit…

An organization should be more than an instrument that shareholders can use to realize a means. It should represent a coalition between resources and suppliers to increase the well being of all involved in an organizations success (ELTC, 2005). Strongly motivated employees and customers can work together to help an organization pursue interests that meet the needs of all rather than a select group of stakeholders. This will not only maximize an organization's profits but also benefit society at large.
The key to maximizing these relationships is managing the welfare of stakeholders in a general sense (ELTC, 2005). Shareholders are but one of many stakeholders in an organization. A firm should be interests in meeting the needs of shareholders, however other stakeholder relationships are just as valuable to a corporations profitability and success as relationships with shareholders.

Conclusions

All stakeholders in an organization have expectations. Meeting the needs of all stakeholders, not…

Valuation and Financial Statements
Shareholder Value

The question of shareholder interest as it pertains to a takeover bid is dependent on a variety of factors, not the least of which is the valuation of the company as determined by the board of directors and executive management. While current stock price plays a relevant role, valuation depends on analysis conducted in key areas including but not limited to: earnings multiple times EBITDA, price to book ratio, forward looking earnings guidance, and perhaps most crucial enterprise value. The current scenario of ABC Company pursuing the acquisition of XYZ Company for $35.00 a share, a $10.00 premium over the current $25.00 stock price, allows for an explication of these valuation techniques.

XYZ management believes that the $35.00 offer price is undervaluing the company and as such is not in the shareholder's interest. In identifying the rationale for this position a logical place to begin is the…

The return on assets was 7.3% last year, up slightly from 7.1% the year before. Again, the metric has fluctuated and 7.3% is in the middle.
These figures indicate that Pfizer's returns are about average. Aside from an unusually good year in 2007 with respect to their returns, the company is rangebound in terms of its managerial efficiency. Recapturing the 2007 successes would be more encouraging but at present there is little to indicate a long-term trend of improved returns on either equity or assets.

Analysis

Pfizer's performance in the past five years has been uninspiring. The firm has been relatively stationery, especially with respect to revenues. Their business seems to be maturing as well, supported by the fact that the company has steadily increased its dividend. Indeed, without top line growth to attract investors, Pfizer has little choice but to increase the dividend in order to stem the sale of the…

High Nursing Turnover in a Hospital Affecting Patient Operations
In every healthcare institution, it is the expectation of every patient to receive adequate medical care when he/she visits the health care institution. Often, the hospital management and stakeholders must always ensure that all patients are treated as their health needs require. This will be critical in maintaining and enhancing the reputation of the hospital. However, when the patient is visiting the hospital increases, it will reach an extent that the nurses and other staff working in the hospital are overwhelmed. When the nurses and other staff are overwhelmed, the patients will not receive satisfactory medical care (Bae, Mark, & Fried, 2010). In the end, the hospital's reputation will be severely affected. Since not all the patients will be served as expected, they will opt to visit other near hospitals to seek better services. The hospital will receive stiff competition due the…

Stockholders
The decision that the champion of AHF is faced with in this particular case study is a business decision. One may argue that most business decisions involve ethics, particularly those that directly affect the livelihood of its employees. However, USHF is not a charity organization. It is a business organization that is attempting to make a profit. In that regard, the decision of whether or not to discontinue AHF immediately or to allow it to continue with serious reductions to its workforce for the next couple of months is purely based on business concerns and outcomes.

Although AHF has produced some value, it is not engendering profits at a rate swift enough to satisfy its stockholders. Moreover, it is negatively impacting the profits of its parent company, USHF. USHF initially conceived of AHF and located it in Sri Lanka because it believed that doing so would help it further its…

Organization Dividends
Why company pay dividend to shareholders? Why dividends not really affect the shareholders? What the shareholders prefer low or high dividends? Why, Explain?

A company may opt to pay dividend to its shareholders in order to make considerable earnings of the corporate profits. State's law varies on how dividends ought to be paid. Dividends do not really affect the shareholders because it is not compulsory for a company to pay dividends. Kurtz & Boone, (2011) indicates that companies are under no legal obligation to pay dividends to shareholders. Shareholders prefer high dividends because they earn more profits from their shares on the company (Kurtz & Boone, 2011).

In term of Dividends and Signals, Asymmetric information -- managers have more information about the health of the company than investors. Changes in dividends convey information:

Dividend increases

• Management believes it can be sustained

• Expectation of higher future dividends, increasing present value

• Signal of a…

Duties
The directors of a corporation are, essentially, the representatives of the shareholders in the administration of the company. They are charged with the task of administering the corporation in such a way that preserves the assets of the shareholders, and that they receive a good return on their investments. As such, the Board of Directors is the "highest governing authority within the management structure at any publicly traded company" (Kennon, 2012).

Among the tasks that the directors perform that help them in their role are the following: to select the Chief Executive Officer and set the CEO pay; evaluate the attractiveness of and to authorize dividends; recommend stock splits and share repurchase programs; approve the company's financial statements and give advice on mergers and acquisitions (Kennon, 2012). The Board often works with the CEO on some of these issues, such as dividends and M&A activity, but the Board is also responsible…

Top-level managers can be required to own a certain amount of equity in the company, theoretically eliminating their conflict of interest with shareholders. However, some have criticized this strategy: shareholders can focus so much on short-term profits; they may lose sight of the need for long-term investment in research and development, and have little concern for the needs of company employees (Pareek 2003). A disinterested manager is supposed provide more objective advice and theoretically has an interest in not loosing his job: the elimination of 'golden parachutes' that reward managers regardless of company performance might be a better solution. Always, a balance must be struck between the needs of self-interest in objectivity and hiring a manager with a track record that suits the company's needs, rather than attempting to micro-manage his or her personal investments may be the best strategy.
eferences

Pareek, Mukul. (2003, August 7).Shareholder value: The conflict with other…

Ethics
Cable provider Adelphia was one of the major accounting scandals of the early 2000s that led to the creation of the Sarbanes-Oxley Act. A key provision of the Act was to create a stronger ethical climate in the auditing profession, a consequence of the apparent role that auditors played in some of the scandals. SOX mandated that auditors cannot audit the same companies for which they provide consulting services, as this link was perceived to result in audit teams being pressured to perform lax audits in order to secure more consulting business from the clients. There were other provisions in SOX that increased the regulatory burden on the auditing profession in response to lax auditing practices in scandals like Adelphia (McConnell & Banks, 2003). This paper will address the Adelphia scandal as it relates to the auditors, and the deontological ethics of the situation.

Adelphia

Adelphia was once a privately-held firm of…

These examples indicate that a Machiavellian approach to corporate ethics and an utter lack of concern for the state of the environment in the future is poor business practice. Yet the ethical arguments in favor of businesses showing concern for the environment, having rigorous accounting ethics and observing regulations regarding consumer safety is that a failure to take ethical action often results in losses of profits. It is far more difficult to argue that a firm should ignore the need to make a profit at all, and to place the environment first.

Consider the principles of the Deep Ecology movement, which point out that Western capitalism and consumerism itself generates waste, and a focus upon maximizing productivity actually causes harm to the environment. Deep Ecology principles stress that even encouraging people to buy more consumer goods, regardless of origin, is unethical, and that improvements in technology often results in destruction to…

2002, p. 2742).
Corporate culture must be taken into account when analyzing the effects of concentrated ownership and investment. At Taiwanese firms there may be a greater sense of obligation between the corporate managers and employees, and thus more positive and less negative risk taking and risk avoidance. In the United States, at many firms there is a higher level of expectation of self-interest of managers in the pursuit of profit-making, most notably amongst executives that negotiate so-called 'golden parachutes' which allow them to receive a large amount of compensation after leaving the company, regardless of how well they perform, or if their performance is salutary for the corporation's long-term health.

Instead of focusing on the concentration of shares alone, a variety of factors should be analyzed when evaluating the desirability of the ownership structure. Corporate culture, whether the current leadership (or leadership's family) began the firm, and even the personality…

With the idea to globalize comes the concept of outsourcing - may it be in the form of supplies or even the very human resources. Needless to say, outsourcing has always been interconnected with globalization.
Globalization is imposed focusing on the various facets of one's country.

This includes growth of trade, flow of capital thereby ensuring financial capability, stable migration flow, entry of Information Technology (it) and web thus dissemination of technology (Keohane and Nye, 2000).

Trade plays a pivotal role in the economy this is why this is one of the focal point of globalization's purpose. Trade shows the relationship of total factor productivity and growth. Globalization includes increase of trade as one of its goals for it is believed that trade can enlarge the markets for domestic producers, allow the market to reap scale economies, force such market o be competitive and offer incentives and opportunities to incorporate as well…

Ratios at Coca Cola
Current Ratio

Operating Margin

Net Profit margin

Return on Equity

Current Ratio

he current ratio provides a quick yet accurate assessment of a company's ability to meet its short-term obligations and determines the degree of liquidity the company has. his gives a quick snapshot of the basic financial health of the company and its value at a given point in time (that is, not counting the value of operations), with the higher the ratio the healthier/more liquid the company is. Coca-Cola's incredibly high current ratios are an important feature of the company, and once can see that even during the leanest year of the financial collapse, 2008, Coca-Cola remained quite strong in this area. he current ratio was included as a measure because it demonstrates the extreme degree of liquidity the company has long enjoyed, which gives it a great deal of flexibility in the expansion or changing of operations and…

ole of Technology in Corporate and Social esponsibility
Insider trading. The insider trading case that has become most prominent is that against aj ajaratnam who ran the hedgefund Galleon Group, and was charged along with his co-defendant, Danielle Chiesi, a former consultant with New Castle Funds, LLC ("Insider Trading," 2010). ajaratnam was convicted of 14 counts of insider trading, which makes this case the largest scheme concocted by a hedge fund ("Insider Trading," 2010). ajaratnam's sentence was 11 years in prison accompanied by a $10 million fine ("Insider Trading," 2010). ajaratnam was part of a "triangle of trust" that functioned as a deliberately corrupt business model in which inside information is fed through networks of experts to traders within various companies ("Insider Trading," 2010). Along with five others, ajaratnam worked with a network of consultants and insiders to net in excess of $20 million between the years 2006 to 2009 ("Insider…

Unlucky and Edison-
Lennie Edison, employed by Vulcan Systems, is on call 24/7 as a trouble shooter. Because of this, he drives a company vehicle, to and from work, and occasionally stops for errands after work on his way home. Edison is involved in a collision with Unlucky, who suffered bodily injury and damage to his car. Unlucky is suing both Edison and Vulcan in joint and several liabilities.

ule- Unlucky's attorney cites respondeat superior which states that an employer is responsible for the actions of employees within the course of their employment. When applied to physical torts an employer/employee relationship must be proven with the act committed during the scope of employment. Three general conditions apply: 1) Was the act committed while the employee was at work or on work property? 2) Was the offense committed during a normal working situation? 3) Was the agent motivated to benefit by committing the…

Business Organization Coursework:
Mary and Joseph, stakeholders in Kings plc, are concerned about the company's management practices by its current directors. One of these recent practices includes the desire by these directors of Kings plc, which owned a hotel, to acquire two additional hotels. As a result, these directors created a subsidiary company for the sole purpose of acquiring the two hotels. In this new development, Kings plc could only acquire few shares of the new subsidiary whereas the directors and the company solicitor purchased the majority of the new subsidiary's shares. Therefore, the new subsidiary was eventually sold and the directors made significant profits. However, the shareholders of Kings plc i.e. Mary and Joseph want to know whether the directors were legally entitled to carry out such practices. These shareholders are specifically concerned with the legality of the directors' actions and the relevant legal sanctions against the directors, which should…

ith Domino's UK, the company has in its annual report and in its press releases outlined its future expansion plans. There are figures readily available with respect to trends in its same store growth and with respect to its dividend policy. All of these factors should, in theory at least, be included in the current share price. The first step in valuing the company will be to ensure that this is the case.
Given that the price of the company today is expected to be the fair value of the company's future earnings, an acquiring firm would need to consider in its valuation the worth of Domino's as part of its operations. Thus, a bid would need to be done on the belief that its acquisition of Domino's would make Domino's more valuable than it already is. This is the concept of synergy, defined as "the specific increases in performance…

They are held responsible by the CEO.
The shareholders of the corporate are the legal owners of the corporation. In most cases, they do not actively control the corporation, but rather are responsible for appointing the board to oversee the corporation on their behalf. The shareholders as owners have some entitlement to profits from the company, but the terms of that profit distribution are generally decided by management when it announces its dividends. The shareholders do have a small handful of legal responsibilities. They elect the board. They also vote to approve the auditors. Occasionally, such as when Arthur Andersen collapsed, shareholders may be compelled to vote outside of normal shareholder meetings. The shareholders also have certain rights of ownership such as the rights to the proceeds from the dissolution of a company, should there be any.

The above definitions apply primarily to public corporations. These roles may differ in privately-held…

The act contains a prescription drug entitlement. This is accomplished by providing subsidies for employers to convince them not to eliminate prescription drug benefits for retired workers. Further subsidies were made to prescription drugs for Medicare beneficiaries. Extra money was given to rural hospitals. The act also provided for a trial of partly-privatized Medicare.
Another result of the act was the creation of health savings accounts for workers. These replace company-run health reimbursement arrangements, and the HSAs offer advantages over flexible spending accounts, especially because the former rolls over where the latter does not. This part of the act was designed to replace the Medical Savings Account system. Lastly, there were internal changes such as with respect to the way claims are processed.

This law is a good law. hile expensive for the federal government because of its prescription drug provisions, it introduced the HSA system, which represents an improvement over…

Corporate Structure
A corporation is a form of business structure. The corporation is given the same basic rights and duties as an individual. This shields members from the corporation from some liability for the corporation's actions, but also prevents them from utilizing corporate assets in the same way that one would use personal assets. There are some differences between publicly held and privately held corporations; however the basic structure of a corporation remains the same regardless of how the corporation is held. There are three main groups in the corporate structure. The first group consists of the directors of the corporation. The second group consists of the officers of the corporation. The third group consists of the shareholders of the corporation. Individuals may belong simultaneously to more than one of these groups, but each group has different responsibilities.

The first group consists of the directors of the corporation. When forming a corporation,…

They deserve to be given importance and value in all kinds of decision-making and important matters of the company. If the CEO or any upper level management personal is diagnosed with cancer; than it is the right of the shareholders to be acknowledged. Hiding it from shareholders will result in confusion and misunderstandings.
Disclosing cancer to shareholders is also important because even if the cancer is at an early stage; it needs to be treated immediately through surgery, radiation or chemotherapy. These treatments make patient weak and look physically different from before. Secondly, he or she will also be absent from work for some time due to hospital visits. Therefore, it is important to share this news with shareholders so that they can give a soft corner, emotional support and courage to their boss.

As stated in the article, according to Kim Thiboldeaux, the president of Cancer Support Community; there are…

" (edhead 2008) (Manow 2001)
These factors are showing how institutional investors are playing an important part in offering additional amounts of liquidity to a variety of businesses. This helps them to address a number of issues they are facing ranging from managing strategic acquisitions to having additional financing for bringing new products or services in the marketplace. When this happens, these organizations become more competitive and flexible in meeting the needs of customers. (Manow 2001)

Institutional investors and the short-termism theory

However, one the biggest criticisms of the role of institutional investors is they are encouraging companies to focus on meeting short-term objectives. This is because all investors want to see an increase in their profit margins. When this happens, the price of the stock will move higher from these favorable perceptions. During the annual proxy vote (for the board of directors), this ensures that they will be reelected to their position…

purchase of Smithon Manufacturing, Mr. Jones wants to know if he should outright purchase all of the stock.
1(a). Smithon Manufacturing requires new equipment, which will cause debt for the first two years. If Mr. Jones decides to purchase all shares of the company, he will inherit the company's debt. Already the owner of Johnson Services company, one option is to issue debt to pay for the Smithon company. Issuing debt has its benefits, including reduction in taxable income due to issuance of interest payments to debt owners. In issuing debt, Mr. Jones would raise Johnson Services company's debt-to-equity ratio, which raises the chances of bankruptcy and may have difficulties receiving corporate loans in the future (Sharp Investing, 2007).

Mr. Jones wishes to change the structure of Smithon Manufacturing from a C corporation to an S corporation. AC corporation is a separate legal entity, and shareholders have liability protection from debts…

This was followed by the enactments by House of Lords in 1897 in Solomon v. Solomon & Company. The concepts of corporate entity and limited liability were incorporated in English law in the same period. In this case, the head court announced that a company is a separate legal individual completely different from the members or shareholders.
From this announcement, we can say that a company is a separate legal entity having a separate life, different from its members. A company can be an owner of any property, can sue anyone, can be sued by anyone and has a life just as any going concern. It is a commonplace of the law, is a very heavy veil drawn between the two can be lifted in many cases; it seems that only a limited number of changes is based on current judicial thinking.

2.2 Some doctrines about Corporate Veil

The Court does not…

There may be dramatic differences in the Beta on other stock exchanges. In this case, one must be certain of what comparison is being made. In addition, differences in currencies may produce different results. The beta, in this case, is not a reliable means of assessing company performance. However, it can be valuable from the standpoint that it reflects the connection between andstad and it dependence on the global economy.
The Shareholder Value Added approach defines value as the corporate value, less the value of debt. It focuses on the change in value over time. It is usually calculated for several periods of time, using he debt and equity in each period. However, like the other methods, it becomes less accurate over the long-term. The more distant it becomes from the event, the less accurate this method tends to be.

Each of the valuation methods mentioned earlier has drawbacks in terms…

In developing countries, consumers are more affected for two reasons. One is that consumers are more likely to buy raw ingredients. ithout manufacturing entities to absorb some of the commodity price increases, consumers are left to absorb almost all of the increase (Ibid.). As a result, food prices have increased more in the developing world than in the developed world. Additionally, consumers in these countries already expend a significantly higher percentage of their income on food than do consumers in estern nations. Thus, demand for food in the developing world is price elastic and consumers suffer because they are unable to meet their food needs.

In the developed world, increased food prices suppress demand in other sectors of the economy, which can cause minor shocks in employment and investment in some businesses and industries. In the developing world, food price shocks can result in starvation and civil unrest. The recent wave…

easyJet Financial eporting
ecent History egarding Corporate Accounting Policy

The recent corporate accounting practices of easyJet Airlines reflects financial accounting policies at the company, which were in disapproval by Sir Stelios Haji-Ioannou, founder -- easyJet (Waller, 2008) . The Board of Directors are responsible for drafting and adopting of company accounting policies. Sir Stelios' rejection of the boards annual accounts is reflective of the agency/principle problem such that the board is now potentially viewing the corporation in a different light than from the founder.

The founder proclaimed the accounting policies adopted by the board of easyJet to be inaccurate and not reflective of the "current commercial realities and the macro-economic climate" says Sir Stelios (Waller, 2008). Stelios recommends changes to the policies in place and suggests appointment of two directors of non-executive capacity to serve on the board to provide financial accounting insight into the policies established and set forth by the board.

Stelios'…

Distribution in Finance
A company has an obligation to maintain financial stability through engagement to its staff, clientele and the shareholders. It ensures this by laying down vital, strategic, financial plans. Cash distribution is a methodology in which a company can achieve this. It is often referred to as the distributions from a company presented to a limited partner investor from monetary resources and in the form of money. The limited partners have a percentage of shareholding in the company; hence, the latter maximizes the opportunities set in place in investing, capital structure and working capital policies. Companies distribute finances to their partners through several procedures that this context looks into; dividends and stock repurchases (Ehrhardt and Brigham, 2008, pg 515).

Overview of Cash Distribution

Cash available for distribution to its investors is derived from operations being carried out in the company (Brigham and Ehrhardt, 2010, pg 560). Decision-making in cash distribution…

6%, versus 6.1% in 2008. The return on equity was -6.1% in 2009 and was 15.5% in 2008. The asset and equity levels were relatively stable for the two years, so most of the changes can be attributed to changes in the net income. To investigate those net income changes, the margins can be analyzed. The gross margin for 2009 was 3.14%; for 2008 it was 19.8% and for 2007 it was 21.1%. The net margin for 2009 was -5.7%; for 2008 it was 14.3% and for 2007 the net margin was 19.4%. hat this indicates is that the decline in the profits and therefore in the ROE and ROA stems from a decline in operating profit.
For Ryanair, the operating revenues increased 8.4%, but the operating expenses increased 30.9%, leading to the sharp decline in operating profit. This focuses attention on the key cost drivers that contributed to this unusually…

Dividends
A regular cash dividend is paid out of the company's cash supply. The dividend can be at a fixed rate, or can be loosely tied to the company's net income. This is the most common form of dividend, and is paid under most circumstances. hereas a regular cash dividend is a recurring dividend, an extra cash dividend is a non-recurring dividend (Investopedia, 2012). This is a one-time dividend that is paid by the company. There is no expectation of a future extra dividend, in contrast to a regular dividend. A special dividend is the same thing as an extra dividend. The only slight difference is that something termed a special dividend is not necessarily going to be paid out of cash. The company may pay with shares or some other asset. Most commonly, however, this type of dividend will be paid out of cash.

A liquidating dividend is fundamentally different from…

1998, and DuPont is considering spinning off Conoco, an oil and gas company, of which DuPont presently owns 100%. The spinoff would likely be the largest IPO in history if the entire company was sold. There are, however, a number of things that need to be taken into consideration. DuPont may wish to retain some interest in Conoco, perhaps even controlling interest. How much should be spun out is an important consideration. Further, there needs to be an appraisal of the market, to determine what the value of Conoco might be on the open market, and if this is fair value to DuPont for the company. The IPO market needs to be able to handle the Conoco IPO in order to extract the highest price possible for the shares. Further, there needs to be financial considerations, such as how such a deal would affect DuPont's share value. There are…

Thus, the first three all have legitimate interests, but other interests are clearly subordinated.
2. Scott's first interest is to the shareholders. Management's role is to act in the best interest of the shareholders -- that is the proxy relationship between management and owners. However, this does not mean that the senior employees should be cut. The choice of employees to be cut should be based on productivity vs. cost, not just on a cost basis. The majority of the shareholders should be considered, rather than a vocal minority. In addition, the interests of the shareholders should be considered on a long-term basis. This may guide Scott to a different decision than that which he is being presented. Ultimately, however, both Ms. Deason and the employees are also agents of the shareholders so in a way all parties involved are bound to consider the benefit to shareholders…

announcement merger companies Vela Bahri. *Size companies *easons merger * process merger ( time ) * happened stock prices shareholders reaction *After completed merger results merger? status change? *oles top manager merger.
Vela Bahri Merger

Information from the announcement of the merger

The announcement of this important merger was made on June 27, 2012 by Saudi Aramco and the National Shipping Company of Saudi Arabia. The announcement revealed the fact that the two companies signed a non-binding memorandum of understanding, in order to pursue the merger of the fleet and operations of Bahri and Vela International Marine Limited, which is a wholly owned subsidiary of Saudi Aramco.

The objective of the merger is represented by developing a larger and more diversified national shipping company. By joining their forces, the two companies expect to become a force in the shipping activity. Their intention is to successfully address the shipping activity by expanding it on…

Crown Cork & Seal
Crown Cork and Seal

What do you think of Connelly's industrial strategy, financial policy & performance?

Connelly's strategy was ahead of its time. This is because he saw the changes that were occurring early and made adjustments to the business model of the firm. From the 1960s to the 1980s, this helped Crown Cork & Seal to adjust with demand from customers. His financial policy was designed to reduce costs by: closing facilities that were unprofitable and going into products that had a lower cost structure. This enabled the firm to increase its bottom line results and improve shareholder value. These factors, enhanced performance by focusing on markets which are contributing to larger percentage of the worldwide market share. ("Crown Cork & Seal," 1997)

What do you think of Avery's industrial strategy, financial policy & performance?

Avery's focus was on increasing the company's competitive position through acquiring firms that helped to…

Misrepresentation, 2010:
Duty and public notice in the UK, PLC

The audited financial statement prepared by Bumble & Co, on behalf of Horizon PLC 'made public' the performance of the corporation: reporting earnings of £10 million. Where published, shareholders and other stakeholders may 'assume' official and final writing according to the Statute of Frauds, which stipulates that public notice of the company's profit and loss constitutes reliability to the shareholders and other stakeholders, and assumes that those parties are in agreement to those activities. Analysis of Horizon, Plc v. Bumble & Co. will be subject to decision based on UK laws on Misrepresentation and unfair commercial practices under the Unfair Commercial Practices Directive 2005/29/EC ("UCPD") which came into force 26 May 2008. The 2008 law on misrepresentation is preceded by the UK Misrepresentation Act of 1967 (OPSI, 1991).

Preface to the discussion is what rule elements are not at play within the fact…

stakeholder capitalism and shareholder capitalism?
Under what conditions might stakeholder capitalism be superior to shareholder capitalism? Why is this?

How do ideas about how markets economies operate influence the form of corporate governance in a country or region?

What is the primary difference between H-mode firms and J-mode firms, and which type of firm tends to perform better over the long-term?

PEPAE YOU ANSWES TO THESE QUESTIONS.

Shareholder capitalism is focuses on the interests of shareholders, a factor that is deterministically influential with respect to corporate governance, mission, and values. Stakeholder capitalism establishes forms of corporate governance and identifies corporate missions and values that engage in the pursuit of the interests of all stakeholders. When considering how capitalism is expressed in various countries, it becomes clear that the overarching difference is that firms in the U.S. And the UK are designed in a manner that enables the creation of wealth for shareholders. Accordingly, in…

This ratio eliminates the stock figure from that of current assets and like the current ratio; it is used to measure the liquidity of a firm. The quick ratio may in some instances be preferred over the current ratio as it is inherently difficult to turn some assets into cash. In regard to the two companies, the quick ratio brings out Plume Inc. As being more risky as it is more likely to default on its short-term obligations. According to Tracy (2009), the quick ratio of a firm should ideally be grater than 1.
Part B: Health and isk Analysis in Brief

Looking at the debt to asset ratio, Arrow Company comes across as being more risky than Plume Inc. This is basically because its higher debt to assets ratio exposes it to a larger amount of debt which both investors and creditors may be wary of. Further, the higher debt…

Short-term wins creation

In this case, the insistence is on the enhancement of credibility for change through demonstrating gains made. In the case of News Corp, those who excel in change related initiatives could be rewarded and recognized going forward.

Building on Change/Consolidation of Gains

Here, quick wins should be taken as a beginning and not as an end. Hence in a way, victory must not be declared before the whole change process is over. When it comes to News Corp, efforts could be undertaken to ensure that each success or failure is taken as an opportunity to learn.

Institutionalization of New Approaches

Lastly, change should and must be made to stick. Hence effectively, change should be made part and parcel of the organization by anchoring the same on the corporate culture. In regard to News Corp, to embed change on the culture of the organization, efforts may be undertaken to ensure that change is…

International Crisis on Businesses.
In this paper, I will assume the task of a consultant at McKinsey and Co. It is my duty to analyze the effects on international and local businesses of the problems which are erupted in Middle Eastern/Northern African countries particularly Egypt, Tunisia and others. This paper will be produced for the clients of McKinsey and Co in order to assist them in their respective strategies for the region. The main four topics which would be addressed in this paper are as follows, the local impact on business, the global impact on businesses and industries, the impact on shareholder value and wealth of the most affected companies and finally the short, medium and long-term political influences which might affect businesses.

Local Impact on Businesses

During the times of severe political or social unrest which is now seen in countries like Egypt, Tunisia, Syria and others, the overall environment of…

Clearly, he companies engaged in this practice were operating with direct intention, and a roper governance system would have made this obvious and prevented it.
Software Spying

In another telecommunications case, a company was found to have included spyware in a company-sponsored "software upgrade" to users' cell phones, that enabled the company to collect confidential information from users' phones without their consent (Khaleej Times, 2009). Not only is this practice clearly unethical, but it is also illegal despite a lack of stringency in the detection of such crimes and the prosecution of large-scale corporate offenders such as telecommunications companies. Again, greater transparency and internal control would have allowed this practice to be discovered much sooner, and the risk of discovery almost certainly would have prevented this action from ever occurring. Corporate governance works best when it is so strong it is only rarely and usually accidentally tested; when purposeful actions like…

4. If Enron shareholders had been fully aware of the LJM partnership agreement, do you believe they would have been willing to continue investing in Enron?

LJM was created by Fastow allegedly to buy poorly performing Enron assets, but in reality to hide debt and inflate profits of Enron in order to leverage its stock price. It is almost certain that Enron shareholders would have ceased to continue investing in Enron had they been aware of the full significance of LJM.

LJM, in its essence, entailed that Enron was far below that which it's displayed to the public and that likely its debts were more massive and its profits far less than those claimed. Investors, obviously, would not want to invest in a poorly performing company.

Even if Enron's profits were higher and debts lower than those that the company tried to conceal, the very fact that Enron was not transparent or straight…

Argo Vate/Hostil Takeover
ArgoVate/Hostile Takeover

Is this a hostile takeover?

A hostile takeover is described commonly as "acquiring a firm despite the disapproval of, or open resistance from, its board of directors. The acquirer ('raider') usually takes the takeover offer direct to the target firm's stockholders (shareholders) or seeks their approval to remove the obstructing board members." (Business Dictionary, 2013) In this case the takeover is definitely hostile because the AgroVate management does not think that the merger will result in overall betterment but that the employees and shareholders may be affected. On the other hand the purchasing company Bijoux wants to dismantle the current board and sell off AgroVate's widget finishing and the main business being service uniforms; there is no match or significant business advantage in the merger, which prima facie appears to be a hostile takeover.

Can the AgroVate board legally adopt defensive measures against Bijoux?

It is legal for a victim…

Nortel Case Study
Nortel Networks Corporation, more commonly referred to as Nortel, was a global company of Canadian origin that at its peak in the early 2000's had comprised of one-third of the total valuation of the companies listed on the Toronto Stock Exchange (TSX). Nortel was founded in 1895 in Montreal, Quebec, with its manufacturing headquarters currently located in Mississauga, Ontario. The company manufactured data networking equipment along with offering telecommunication services. It employed over 94,500 employees worldwide.

Nortel's troubles began in the 1990's when under CEO John Roth, the company expanded into the internet technology market. Roth used media to alter public perception of the company. The sale of the optic fibre networking gear by the company from then on was hyped up by the speculators in the market, driving the share price of the company up, even though the company failed to produce overall annual profits. This is due…

Corporate Finance
Essentially, most businesses view shareholders, i.e. The owners of a business as being the most important stakeholder group. It therefore follows that as per this view, a business entity has an obligation to put the needs of stockholder/owners first. It should, however, be noted that there are numerous other groups that also have an interest in the enterprise, and who are affected by the firm's actions. Key stakeholder groups according to Sims (2003, p. 74) include, but they are not limited to, "shareholders and investors, employees, customers, and suppliers…the government and communities…"

The table below ranks various stakeholders on the basis of: i) expected risk and return, and ii) importance to the organization's success.

Table

Stakeholder anking on the Basis of Importance to the Organization's Success

Stakeholder anking on the Basis of Expected isk and eturn

Shareholders/investors

Shareholders/investors

Government

Suppliers

3. Customers

3. Employees

4. Employees

4. Customers

5. Suppliers

5. Community

6. Community

6. Government

Shareholders top the list in both instances. It is important…

Remuneration & ther Subjects
The authors of this report have been asked to assess a number of subjects surrounding remuneration of employees and the overall corporate/social ethics involved in the same in Australia. There are also some tangential and related subjects that will also be spoken of. In total, there are five broad-based questions. The first question speaks about risk aversion, profit/wealth maximization, wealth management, different stances that different people and personnel take vis-a-vis risk and financial reporting manipulation. The second question references the horizon problem. This second question looks at the different motivations and perspectives that different people in an investment and accounting situation might take. Managers have their axe to grind and stakeholders typically have a different one. How bonuses for investment managers figure in will also be explored. Finally, there will be a review for the fifth question that pertains to the transparency and visibility of remuneration consequences…

law cases (Corporate Law Issues cases)
Trustees of Dartmouth College v. Woodward, 17 U.S. 518 (Wheat) (1819)

The Court had to decide whether "the act of incorporation . . . creat[ed] a civil institution, to be employed in the administration of the government" or created a private charitable institution. What did it decide? What was its reasoning?

Dartmouth College was originally chartered as part of a contract between the King of England and the trustees of the College. The Court ruled that this contract was still valid even though the United States was no longer a British colony. The Court ruled that "the corporation in question is not a civil, although it is a lay corporation. It is an eleemosynary corporation. It is a private charity, originally founded and endowed by an individual, with a charter obtained for it at his request, for the better administration of his charity" (Dartmouth, 1819). Contracts…

Overall, the risk to DeeBilder is substantial. It does not appear than management has many opportunities to beat Home Depot, since DeeBilder competes as a low cost provider but Home Depot can undercut them on any product. DeeBilder will find it a tough adjustment to switch to a different business model, so they are in all likelihood going to lose this battle. Management in this situation needs to realize that the risk is almost entirely on their side. Home Depot has very little risk, the only issue at hand is how they are going to take over the market. For DeeBilder, the choice is whether to capitulate and go quietly, or whether to go down swinging, the latter choice likely to result in a total erosion of shareholder value.

2. It is unlikely that Home Depot is concerned about bad PR if they crush DeeBilder. Their low prices will win over…

M2Global Technology Ltd. has a specific metric that determines CEO and managerial pay based upon a combination of financial returns, efficiency, and customer satisfaction.
Stock options with restrictions that cannot be 'cashed out' for a number of years, or forms of equity that are dependant upon long-term goals also reduces the incentive for CEOs to quickly and artificially boost stock prices. They ensure that the CEO has a real, financial stake in the long-term health of the company. There is also growing agreement that hefty, unrestricted severance packages send the wrong message to CEOs -- and golden parachutes are also highly unpopular amongst ordinary shareholders.

But as important as these incentives may be, perhaps the best prescription for success is a good choice of a CEO with a managerial style is a good 'fit' for the company culture. A CEO who wishes to succeed and foster his or her reputation in…