Minority Shareholder Rights- Case - 780 Words

To: Joe Brock From: Sue Smith, CPA Subject: Minority Shareholder Rights Facts: Joe Brock is a minority interest shareholder in Big Corporation. Leslie Ross is a shareholder that owns less than 50% of the voting shares, but has the majority of the voting shares and thus has taken control of the corporation. According to SFAS 94, due to this control, Leslie Ross must consolidate his interest with Big Corporation. Mark Jones, a minority shareholder, is in a position of management for the company. Joe Brock is unhappy with Mr. Jones’ decisions and would like to challenge his authority. Issue: Determine what factors arise in considering if a minority investor can make maintain such control or what can be done to prevent others†¦show more content†¦Consideration is given if the majority shareholder owns such a significant portion of the investee that the minority shareholder has a small economic interest. The larger the disparity, the more likely these are to be protective rights. In this situation, there is not a large disparity. b. If the corporate governance arrangements states that decisions are made at the shareholder level, these are likely to be substantive participating rights. c. If matters can be put to a vote of the shareholders, these are most likely substantive participating rights. References: ASC 810-10-25-5 Assessing whether the rights of a minority shareholder should overcome the presumption of consolidation by the majority investor depends on whether the majority investor has control over the corporation. Judging control depends on many factors, including if a minority investor has participating or protective rights. ASC 810-10-25-10 through 25-11 A minority investor that holds protective rights does take the control away from the majority investor and the owner of the majority voting interest would need to consolidate with the corporation. Substantive participating rights are granted by contract or by law. A minority investor that holds these rights can participate in significant decisions that are made in the ordinary course of business, including vetoing significant decisions proposed by the investor with the majority voting interest. If thisShow MoreRelatedComparing Foss V Harbottle Rule And Derivative Action1664 Words   |  7 PagesIntroduction The protections under the Corporations Act suffice to guard the minority from the majority’s unfair wrongdoing. In fact, the Australian corporate law provides significant protections on shareholders. To support the argument, this essay discusses Foss v Harbottle rule and derivative action. It also elaborates exceptions to the rule, especially ‘fraud on the minority’ and statutory protections available for the minority protection under the Corporations Act. These are analysed in views of organicRead MoreProtecting interest of the minority Shareholders1625 Words   |  7 Pagesï » ¿Protecting interest of the minority Shareholders M S Siddiqui Legal Economist and pursuing PhD in Open University, Malaysia e-mail: shah@banglachemical.com The over-investment by directors is not good for the stock market and it should be addressed properly to find a way out and safeguard interest of minority shareholders from the experience of other markets, writes M S Siddiqui†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. http://www.thefinancialexpress-bd.com/2013/11/25/5614 In Asian countries including Bangladesh, theRead MoreWhy The Directors Have Breached Their Duties1404 Words   |  6 PagesQuestion 1 (a) Analyse whether the directors have breached their duties. Your answer should include reference to relevant cases and sections. Issue: whether the directors have breached their duties. It is questionable that whether the directors breached their fiduciary duty towards the company by not putting first the interests of the company. Relevant legal principles: Re Broadcasting Station 2GB Pty Ltd [1964–1965] NSWR 1648 Corporations Act (ss 180–184 and 588G) CORPORATIONS ACT 2001 - SECTRead MoreGucci Lvmh: the Battle for Control1484 Words   |  6 Pagestakeover at all costs, is a classic example in the fashion goods industry. The case can be seen as mainly a battle between the two majority stakeholders in Gucci, namely the management of Gucci itself versus the other majority stakeholder LVMH. It can also be seen as the battle between two personalities, De Sole of Gucci and Bernard Arnault of LVMH, each determined to get their own way, regardless of the other minority shareholders. The newly revitalized and profitable Gucci under the management of DominicoRead MoreBusiness Organizations Summary1574 Words   |  7 Pagescarrying on business in common with a view to profit. * Differences between partnership and co-ownership * Joint and several liability * Partnership agreement – checklist of issues * Liability of partner for acts of employees * Rights and duties of partners to one another as set out in the Partnership Act (Ontario) * Dissolution of a partnership * Possible tax advantages of a partnership * Limited Partnership – Consists of a general partner and limited partner(s)Read MoreArticle Should Be Bound By An Outsiders Analysis1610 Words   |  7 Pagesoperation on behalf of a company. There are the Board of Directors and General Meeting. Directors are those who make the decisions on behalf of the company, such as signing agreements and are called outsiders. The General meeting consists of the shareholders who invest their interest in the company and receive shares and are called insiders. These two bodies are acting under a statutory contract. For providing flexibility, different forms of articles came into existence for each type of company. NonethelessRead MoreCircon Case Essay1399 Words   |  6 Pages1. Why is Auhll (CEO of Circon) resisting to the takeover? How do incentives of Auhll conflict with those of other (minority) shareholders? Auhll liked challenges, he had an innovative mind and he liked to do something new and different every time. .Auhll seems to have a soft corner for lost causes, Circon was a lost cause which he had picked up to turn its performance completely. ACMI as well as Cabot fall into the same category as that of Circon Inc. Having seen success with Circon and ACMI,Read Moreright and protection of interest of the minority shareholders6159 Words   |  25 Pagesï » ¿ Abstract This paper examines Rights and Protection of the Interest of the Minority Shareholders I will discuss the recent development, issues and legal practices in the subject in Bangladesh perspective as well as international. Rights of Minority Shareholder and protection of their rights is now talked topics as new problems are emerging regarding the issues. A few initiatives have taken by national level and problems are gradually increasing, therefore some recommendation has been prescribedRead MoreLegal Obligations of Transactions in the United States1031 Words   |  4 Pagesuninterested directors, uninterested shareholders or sometimes both. In the United States, if a conflict of interest transaction is negotiated and approved by the uninterested directors, in a manner that be near to arms length negotiations, including the right of the uninterested directors to reject the transaction altogether, the transaction is accepted unless a shareholder proves in court that the transaction is not entirely fair to the company. The burden is on the shareholder to show lack of entire fairnessRead MoreThe Articles Of Association ( Aoa ) Forms The Constitution Of The Company1499 Words   |  6 Pagescompany by defining the responsibilities of directors, the type of business and the means by which the shareholders exert control over the Board of Directors . This essay will illustrate the similarities and differences of the AOA to a contract and how it is special in nature. Based on Section 14 of the Companies Act 1985 , AOAs are on the same level and to the same extent as if the company and shareholders had signed a contract. This is illustrated by Sterling J’s statement in Wood v Odessa Waterworks

Organizational Effectiveness Of An Organization - 1282 Words

Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. Organizational effectiveness groups in organizations directly concern themselves with several key areas. Leadership, decision making and structure, people, and cultures are just a few of several key areas. Leadership consist of self and crew understanding of a clear vision, sharing that vision with others so that they will follow willingly, providing the information, knowledge and methods to realize that vision, and coordinating and balancing the conflicting interests of all members and stakeholders. A leader steps up in times of chaos, and is able to think and act effectively in difficult†¦show more content†¦Decision and structure has to have clear roles and accountability for decisions, also needs organizational structure that supports objectives. Nonprofits appear to attract good talent and do a remarkable job at placing the right people in the right places. On the contrary, these employees (the people) do not feel that their work is well aligned to the priorities of the organization. Organizations on average have a hard time evaluating, developing, and rewarding staff consistent with the organizations priorities. This not being surprising at all, given leadership scores on setting and communicating priorities. Communication is extremely important for the success of an organization. A majority of bosses communicate far too little amongst their organization. It is tough for busy business owners and executives to keep their employees up-to-date on the latest organizational news, which is understandable. This is why organizations have management teams. Regardless, you should do everything is your power to get employees the information they need to do their jobs effectively, quickly and efficiently. Make time for employees. When an employee needs to talk with you, whatever the situation may be, make sure that you set aside the time to do so. Lastly, recognize their achievements. Every employee want to do a good job while on the job and love to be recognized when they do, prizes don’t have to always

Why Volatility Diminishes As Pension Funds Investments On...

Thomas, Spataro and Mathew (2014) test whether volatility diminishes as pension funds investments in stock increases. The hypothesis was pre-defined and clearly mentioned at the beginning of the study in an easy understandable way. To test hypotheses, they use a panel data of 34 OECD countries with specific time range from 2000-2010. They determine the independent variable which is equity market volatility and several dependent variables including the ratio of pension funds assets invested in shares and pension funds assets invested at the country level, average volatility of all OECD countries, value of stocks, inflation rate, income level per capita and the ratio of public debt to GDP. They have identified the variables what may have an impact on the volatility of stock market and give clear and detailed information on why these variables were included in the model. Data also has been described and reported by measuring central tendency of the data. A main descriptive statistics of the variables used in the model shown below. The descriptive statistics includes number of observation, mean, standard deviation and range. The most popular measure of central tendency is mean, which reports the average of variables. In this study mean represents an average value of each variable among 34 OECD countries with 374 observations in total. On the basis of those averages further tests were performed. Median is another measure of tendency, which represents the middle point but hasShow MoreRelatedTechnical Interview Guide22795 Words   |  92 Pages................................................. 23 Advanced ..................................................................................................................................................................................... 30 Stocks ............................................................. ................................................................................................................................. 31 Basic ..............................................Read MoreTen Ways To Create Sharholders Value Alfred Rappaport8372 Words   |  34 PagesRappaport identifies 10 powerful practices. First among them: Don’t get sucked into the short-term earnings-expectation game—it only tempts you to forgo value-creating investments to report rosy earnings now. Another practice: Ensure that executives bear the same risks of ownership that shareholders do—by requiring them to own stock in the firm. At eBay, for example, executives have to own company shares equivalent to three times their annual base salary. eBay’s rationale? When executives have significantRead MoreValuation Multiples16730 Words   |  67 Pages............................................................... 3 — Advantages/Disadvantages of Multiples ........................................... 3 — Enterprise versus Equity Multiples ................................................... 5 — Why Multiples Vary......................................................................... 5 gillian.sutherland@ubsw.com Zhen Deng +1-212-713 9921 zhen.deng@ubsw.com — Choosing the Pricing Date...............................................Read MoreMerger and Acquisition: Current Issues115629 Words   |  463 PagesAcquisitions Current Issues Edited by Greg N. Gregoriou and Karyn L. Neuhauser MERGERS AND ACQUISITIONS Also edited by Greg N. Gregoriou ADVANCES IN RISK MANAGEMENT ASSET ALLOCATION AND INTERNATIONAL INVESTMENTS DIVERSIFICATION AND PORTFOLIO MANAGEMENT OF MUTUAL FUNDS PERFORMANCE OF MUTUAL FUNDS Mergers and Acquisitions Current Issues Edited by GREG N. GREGORIOU and KARYN L. NEUHAUSER Selection and editorial matter  © Greg N. Gregoriou and Karyn L. Neuhauser 2007 Individual chaptersRead MoreInflation Cause, Effects and Remedies11320 Words   |  46 PagesInflation and Deflation I INTRODUCTION Inflation and Deflation, in economics, terms used to describe, respectively, a decline or an increase in the value of money, in relation to the goods and services it will buy. Inflation is the pervasive and sustained rise in the aggregate level of prices measured by an index of the cost of various goods and services. Repetitive price increases erode the purchasing power of money and other financial assets with fixed values, creating serious economic distortions andRead MoreInflation Cause, Effects and Remedies11309 Words   |  46 Pagesand Deflation I INTRODUCTION Inflation and Deflation, in economics, terms used to describe, respectively, a decline or an increase in the value of money, in relation to the goods and services it will buy. Inflation is the pervasive and sustained rise in the aggregate level of prices measured by an index of the cost of various goods and services. Repetitive price increases erode the purchasing power of money and other financial assets with fixed values, creating serious economic distortions andRead MoreMultinational Business Finance 10th Edition Solution Manual41185 Words   |  165 PagesCorporate Governance 8 9 9 10 10 11 12 13 14 15 17 Problem # 1.1: Shareholder Returns†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Problem # 1.2: Shareholder Choices†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Problem # 1.3: Microsoft s Dividend†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.... Problem # 1.4: Dual Classes of Common Stock†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Problem # 1.5: Corporate Governance: Minority Shareholder Control†¦ Problem # 1.6: Price/Earnings Ratios and Acquisitions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Problem # 1.7: Corporate Governance: Overstating Earnings†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Problem # 1.8: Carlton Corporation s ConsolidatedRead MoreManagement Course: Mba−10 General Management215330 Words   |  862 PagesManaging Change 121 121 147 147 Text 3. Why Organizations Change Text Cohen †¢ Effective Behavior in Organizations, Seventh Edition 14. Initiating Change 174 174 Text iii Cases 221 221 225 The Consolidated Life Case: Caught Between Corporate Cultures Who’s in Charge? (The)(Jim)(Davis)(Case) Morin−Jarrell †¢ Driving Shareholder Value I. Valuation 229 229 253 279 1. The Value−Based Management Framework: An Overview 2. Why Value Value? 4. The Value Manager HarvardRead MoreStrategic Human Resource Management View.Pdf Uploaded Successfully133347 Words   |  534 Pages........................ 1 An Investment Perspective and Human Resources .... 2 HUMAN RESOURCE INVESTMENT CONSIDERATIONS ...6 INVESTMENTS IN TRAINING AND DEVELOPMENT ..... 14 INVESTMENT PRACTICES FOR IMPROVED RETENTION ............................................................ 32 INVESTMENTS IN JOB-SECURE WORKFORCES .......... 42 ETHICAL IMPLICATIONS OF EMPLOYMENT PRACTICES ............................................................. 56 NONTRADITIONAL INVESTMENT APPROACHES ......... 58 SUMMARYRead MoreMonte Carlo Simulation218872 Words   |  876 Pages. . . . . . . . . . . . . . . . . . . . 166 3.7.2 Pricing Derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172 3.7.3 Simulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 3.7.4 Volatility Structure and Calibration . . . . . . . . . . . . . . . . . 180 4 Variance Reduction Techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 4.1 Control Variates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Letter to HeorohulfBeowolf Essay Example For Students

Letter to HeorohulfBeowolf Essay I, Gerogar, son of Heorogar, your cousin, send you word of bad news. I am writing this letter to you so that someone may know the ills that have fallen upon this village if the present events do not change. Much has happened from the time that you visited last and wish there to be an account of what happened to this village if I am not able to tell you in person. The ill that has fallen on this town is a terrible monster. The people of the village had heard stories of this demon creature, but everything we were told about it indicated the creature had been long banished. If this was the case, the monster escaped it banishment and is now plaguing this village with many evils. The monster to which I refer is the terrible Grendel that has its evil ways retold in songs from our past. When Grendel reappeared most of us could not believe the stories that a messenger described about the creature. They took place outside of the town in a region that no one ever visited. Believe me cousin, the stories about this creature are true and now Grendel comes and attacks the village were I live. One night Grendel attacked a company of the best guards while they were asleep. He killed many of them and took thirty of there bodies back to his liar were we assume they were his feast. The tragedy that falls on us does not stop at this one night. One night later he return to the village and the body count was much higher this time; Grendel showed no mercy. The fear in this country is great while we wait for Grendel’s next coming, but we will not flee for we are not cowards. We do have hope on the horizon. Our leader has sent word to a foreign land and requested the aid of the Beowulf, the Geat. Days we have waited for his arrival and I am hoping he will arrive before Grendel returns. If he fails to get here in time I believe that everything here will be destroyed, everyone here will be killed. This letter is also to serve as a notice to you that if I should die, all my lands go to you, my closest kin. Cousin, I can not spend anymore time on this letter because my village must make preparations for Grendel’s return. I wish that I could have made this longer for there is much that we can discuss from our past victories. Remember this village is songs as being brave and not just a village wiped out by monsters. If we do not met again in this life then, then I look forward to seeing you in the next. Bibliography: