ICFAI UNIVERSITY

ICFAI LAW SCHOOL

DEHRADUN

ASSIGNMENT

NAME- SHRISTI SINHA

CLASS- 3RD YEAR

PROGRAM- BBA LLB(HONS)

ENROLLMENT NO -18FLICDDN01136

SUBJECT- CGBE

SECTION: C

SUBMITTED TO – ASST. PROF. STUTI TIWARI

 QUESTION

What is the Impact of Corporate Governance when it comes to the role of

Shareholders?

ANSWER

A shareholder can be a person, company, or organization that holds stocks in a given company.
A shareholder must own a minimum of one share in a company’s stock or mutual fund to make
them a partial owner. Shareholders typically receive declared dividends if the company does well
and succeeds.Also called a stockholder, they have the right to vote on certain matters with regard
to the company and to be elected to a seat on the board of directors.

Right to Information–Shareholders have the privilege to get to and look at corporate records
and data concerning the administration and monetary execution of the element. Out in the open
organizations, a great part of the operational and money related data about an enterprise must be
accounted for to people in general by documenting with the Securities Exchange Commission.

Right to Vote –All partnerships must have no less than one class of stock speaking to a
possession enthusiasm for the organization. In many partnerships, the essential proprietorship
share is known as "regular stock". These offers involve voting rights for the investor.

Election of Directors –At the yearly gathering, investors have the privilege to choose
executives. A corporate designating panel of the governing body delivers a slate of chiefs and
prescribes decision of a solitary executive for each accessible board situate. The names of
assigned executives are recorded on an intermediary proclamation and sent to investors. The
investors may either vote in favor of the named chief.

Straight Voting –This technique permits a typical investor one vote for every offer of normal
stock for each accessible seat on the top managerial staff. Illustration: Gail possesses 100 regular
offers of stock in ABC Corp. At the point when two chief seats come open, she may cast up to
100 votes to choose every executive.

Cumulative Voting –This strategy permits a typical investor various votes equivalent to her
number of offers times the quantity of chief seats accessible. She may cast these votes in favor of
any one or the majority of the accessible board seat.

Sale of Assets –Shareholders must endorse the offer of all or significantly all" of the corporate
resources. The thought is this is successfully what might as well be called merger or closing
down the company.
Right to Make Proposals –Certain investors have the privilege to propose particular corporate
moves to be made at corporate gatherings. This is typically done through adding these plan
things to corporate intermediary explanations.

Being a shareholder isn’t all just about receiving profits, as it also includes other responsibilities.
Let’s look at some of these responsibilities.

● Brainstorming and deciding the powers they will bestow upon the company’s directors,
including appointing and removing them from office
● Deciding on how much the directors receive for their salary. The practice is very tricky
because stockholders must make sure that the amount they will give will compensate for
the expenses and cost of living in the city where the director lives, without compromising
the company’s coffers.
● Making decisions on instances the directors have no power over, including making
changes to the company’s constitution.
● Checking and making approvals of the financial statements of the company.

CONCLUSION: Share value of a shareholder is the motivation seeking improvement in

corporate governance. Investor esteem is the esteem conveyed to investors in view of
administration's capacity to develop deals, profit and free income after some time.