Question

Why management and stockholders having differences while running an organization? The answer must be complete.

Answer 1

ANSWER :

The following are the Reasons because of which Management and Stockholders having Differences while Running an Organization

The Main Reason for the Conflict is the Personal Interest and to accomplish Personal Goals of the Respective Stockholders and Management the same number of the choice are taken by the Management and Stockholders.

Investors are qualified for the Income simply in the wake of Paying all Expenses which additionally incorporates the Salalries and different advantages to the administration.

So there will be consistently a contention as Stockholders won't have any desire to upbeat more compensation to the Management as it will lessen their Income and Managers since they are Performing admirably they need more Salary and advantages .

For Any Dividend to be Released to the investors it must be suggested by the Board of Directors and afterward its needs to go in Annual General gathering.

It tends to involve struggle as supervisors at Top have high impact and may attempt to keep the choice according to their decision.

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