Description
Taylor & Francis Ltd Shareholder Activism And The Law : The Future Of Us Corporate Governance by Ekrem Solak
This book provides a complete framework for contemporary shareholder activism and its implications for US corporate governance, which is based on director primacy theory. _x000D_
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Under director primacy theory, shareholders do not wish to be involved in the management of the company; in the rare event that they wish to be involved, it is considered a transfer of power from the board of directors to shareholders, which in turn reduces the efficiency of centralised decision-making in public companies. However, this book demonstrates that shareholders do not use their power to transfer corporate control from the board to themselves, and that some form of shareholder activism is even collaborative, which is a new paradigm for US corporate governance. This book shows that while monitoring remains a key contribution of shareholders, they also bring new informational inputs to corporate decision-making that could not be obtained under the traditional board model. Accordingly, contemporary shareholder activism enhances the board's decision.show more