Question

Say Institutional Investors hold about 85% of a company's shares, insiders hold less than 1% of...

Say Institutional Investors hold about 85% of a company's shares, insiders hold less than 1% of the company share's shares, and individual investors hold about 14% of the company' s shares. Do individual investors influence the company's management discussed?

Homework Answers

Answer #1

Voting Rights

Shareholders primarily affect a business through their voting rights in company decisions. Shareholders generally have power equal to the percentage of shares they own. So an investor with 20 percent of the shares of a restaurant has 20 percent voting power for making major decisions. The management often will put up major business changes to a vote by the shareholders. The board of directors makeup also is voted on by shareholders in proportion to the company ownership.

Ao from above imformation it can be concuded that INDIVIDUAL INVESTOR WITH 14% HOLDING(less then 20%) can not infulance management .

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