Shareholder rebellion occurs when the owners of a corporation work to throw out management or oppose...

Shareholder rebellion occurs when the owners of a corporation work to throw out management or oppose their decisions. Shareholder rebellion may occur at an annual general meeting or through a proxy battle. Research a recent action was taken by shareholders to change their company’s decisions or remove the management. Identify and explain the circumstances and issues involved, and describe the result of the shareholders’ actions.

Expert Solution

Shareholders Rebellion are prevalent in today's corporate world, as there view, opinions, suggestions are underrated. These all matter for good business and goodwill of the company because if shareholders are unhappy with the company, they will rebel, which will harm the company in every possible way. Consent of shareholders is most vital as they are the ultimate builders of the company, and they deserve to be satisfied with every decision that the company takes. Rebellion can be a common way through which shareholders show their disagreement. There can be many situations where there can be chances of resistance to occur. It can be disagreement towards the alteration or elimination of specific rules or policy of the company. Major business decisions which are risky and against the will of shareholders can lead to rebellion. The increase or decrease in stock prices of the company can arise a situation of massive shareholders rebellion. Dislike of management or board of directors can lead to shareholders rebellion. In this situation, both the sides are possible that the company may agree to the shareholders or not or maybe partial to there wants.

keosha answered 1 year ago

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