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In: Economics

Shareholders are owners of the company. How can a company act irresponsibly toward its owners?

Shareholders are owners of the company. How can a company act irresponsibly toward its owners?

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Expert Solution

1. Not caring about adverse selection by making investments which are unduely risky.

2. Providing unequal opportunity to all shareholders in the participation in management practices as per law.

3. Providing unfair and inadequate returns / dividends to its shareholders.

4.Participating in insider trading.

5. Not providing correct and regular information about financial position and transactions of the company.

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Rahul Sunny answered 2 years ago
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