How do shareholders influence the strategic direction of the company? How can long-term creditor influence strategic decisions?
SHARE HOLDERS ARE THE ULTIMATE OWNER OF THE COMPANY.
DECEISIONS ARE TAKEN BY VOTING. SHARE HOLDERS HAVING MAJORITY HOLDING CAN CHANGE THE DECISIONS.
SOME DECISIONS ARE TAKEN WITH UNANIMOUS RESOLUTION WHERE 100% MAJORITY IS REQUIRED. IN SUCH CASES, MINORITY STAKE HOLDERS CAN CHANGE THE DECISIONS.
APPOINTMENT OF AUDITOR OR REMOVAL OF AUDITOR BEFORE EXPIRY OF TERM CAN BE AFFECTED WITH THE SHARE HOLDERS
LOAN TO OTHER ORGANISATIONS OR OTHER INVESTMENT DECISIONS CAN BE AFFECTED BY SHARE HOLDERS OR CREDITORS OR FINANCE PROVIDERS.
CREDIT POLICY, DIVIDEND POLICY, INVESTMENT DECISIONS, FINANCE PROCUREMENT DECISIONS ARE AFFECTED BY SHARE HOLDERS OR EXISTING FINANCE PROVIDERS.
Get Answers For Free
Most questions answered within 1 hours.