In: Finance
Do individual shareholders have an effective say in corporate governance matters? Explain your thoughts by providing specific examples.
corporate governance can be understood ad the transparency and accountability, and can prevent corporate frauds and shenanigans, fraud and issues pertaining to corporate liability. Corporate governance is important to investors, and shareholders have rights and expectations under good corporate governance principles and practices.
So here the question is whether the individual shareholder have an effective say in corporate governance. In my opinion each and every shareholder should be aware about the corporate governance of the company and about all the details of the company. Because before investing a company we should know the value of the company. It means whether the company performing good or bad and if there is any fraudulent activities are there or not. For example if we are investing a company that is going to be a fraudulent situation then there is a chance of decling the value of share. So every share holder must be aware about this .
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