Question
In: Operations Management
Outline the rationale for legal rights and safeguards of shareholders.
Outline the rationale for legal rights and safeguards of shareholders.
Solutions
Expert Solution
Answer: The shareholders are the primary stakeholders for any company. The shareholders are the partial owners of the company and they have their direct interest in the company’s operation. The shareholders have invested money in the company and therefore their interests are the most affected by the actions that have been taken by the organization. Therefore looking into the direct interest of the shareholders in the company and impact that may face because of the company’s operations; they should have legal rights and safeguards for protecting their interests. Without legal rights and safeguards they may not have a say in the company’s operations and will not be able to protect their investment. Therefore just like any other owner or holder of a property or a financial instrument, the shareholders also require legal rights and safeguards for protecting their rights and interests against the risk they have taken while investing.
keosha answered 4 months agoRelated Solutions
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