Question

Define shared benefits of control and private benefits of control? Hint: Corporate Governance Question

Define shared benefits of control and private benefits of control? Hint: Corporate Governance Question

Homework Answers

Answer #1

Share benefits of control are those improvements to firm value that are brought about by the block-holder,but are enjoyed as much as by the minority shareholders as by the block holders.

Private benefits are those benefits of control that a block-holders enjoy to the exclusion of other shareholder.These include misappropriating corporate assets at the expense of minority shareholders.In the other word,Private benefits refers to the economic gain from exerting influence on a company by large shareholders at the expense of small shareholders.

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