AGM -an ineffective forum for shareholder democracy

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Corporate governance - an awkward phrase with several definitions among which the simplest and effective is the one that describes corporate governance as a system by which companies are directed and controlled …

Introduction

Corporate governance - an awkward phrase with several definitions among which the simplest and effective is the one that describes corporate governance as a system by which companies are directed and controlled (Committee on the Financial Aspects of Corporate Governance, 1992)1. Corporate Governance supports businesses that are well managed, well directed, and well controlled. Indeed one of the functions of good corporate governance is to help ensure that good management is in place. Nevertheless, some of the most conspicuous failures in recent years have stemmed from a failure of the control function or from poor direction.All systems of corporate governance have to be considered against the social, economic, legal, and political background of the country in which they developed. A study of the relevant laws governing corporations does not reveal enough in any country unless they are understood on the basis of attitudes and patterns of behaviour to make sense of them. Examples are that of the company laws of Japan and the UK that are not too dissimilar in structure, but the results are poles apart. When we examine remuneration we find a marked difference in approach between the USA and Germany, where exorbitant share schemes have in the one become common and barely exist in the other. ...
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