Question

1. What role do institutional investors and private coalitions play in corporate governance and sustainability? How have they helped or hurt Unilever?

Answer 1

Institutional investors like -bank that invest their fund in form of debt into companies. And private coalition is about the when two governance come together and form a single governance. Like -public private partnership.

Roles played by institutional investors and private coalition in corporate governance and it's stability. :

• Institutional investors provide a huge amount of funds to corporate and in return as take security and also appoint nominee director in company sometimes. Normally corporate prefer to have their own fund as equity so that their ownership is in their hands. So they prefer to borrow from these institution as it doesn't effect the ownership but if they are involved in private coalition they have funds as their capital not a debt to corporate.
• Institutional investors came into meetings and vote by show of hands in accordance with their outstanding debt and private coalition are the part of meeting and they have voting power based upon their share holding.
• Private coalition plays a important role in the event when government faces some shortage of funds on some projects, it helps to increase the efficiency and faster development of project.
• In order to stabilize the economy both plays an important role. Institutional investors like -mutual funds. As people have no source to invest their saving and then earn higher rate. Mutual fund company accepts the money in small small Amount and then invest in that portfolio that gives maximum return to him and after that they take their share of profit. Stability is in terms of finance is considered. Institutional investors is like the life blood of capital market. They help to maintain the social stability in environment also.
• Private coalition is also helped in maintaining the stability. In simple words whenever government faces amperage of fund they enter and do coalition it help the government and ultimately government can use that fund in developing some other infrastructure project so it raise employment also and it gains economy stability.
• There are four PS in corporate governance that is people, process, purpose and performance. Corporate governance is like large companies. And they are more focused to protect the interest of investors whether it is stakeholder or institutional investors. Both plays an important role for corporate.
• Corporate usually like to have more private coalition so that it was able to export and import more, tech updates can be done easily, it's all in the control of firm whether company is relocated it's place but institutional investors didn't support in case of relocation of corporate.
• Hence, both have some advantages and disadvantages but their role is still important in order to maintain stability in environment, society, economy and finance.

Unilever is very good ,big and famous company.

If we talk about their shareholding then it's having 13% share of its own. About 20% is of general public and 66% is of public company ownership. This data may be different for Unilever established in other countries as it is multinational corporation.

Here above we talk about Hindustan Unilever. It's institutional investors have very good faith and here there is greater transparency since its 66% stake was held by public company. Unilever products like -foods, soap (lux). In this company there is no that much scope of private coalition.

Institutional investors and private coalition always made help of Unilever in order to get better growth and to achieve it's vision and mission.

In case of Anglo Dutch company, as they want to change their location from London then there institutional investors hurt Unilever.

In case of Anglo company, we can simply understand that institutional investors wants each and every security in terms of funds rendered by them and if the company change its location it may result into risk for them so there they hurt Unilever and it's share price is fall at that time but private coalition will help there.

Hence, normally we can say that institutional investors and private coalition is good for corporate governance and it's stability, it may hurt only in that cases where investors feels insecurities about their funds invested. They always helped but subject to their portion of profit. In present time Unilever who is having large amount of stake on its own they are trying to purchase their stake in market by making offer to them.