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Questions tagged [corporate-governance]

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6 votes
1 answer
188 views

The board of directors in companies

I understand how a board of directors works. They are elected by the investors. I have a few questions about it. Do directors belong to certain agencies or do they work for the government or do they ...
4 votes
0 answers
112 views

What resources exist to measure a company's integrity?

I have been on a search for companies with integrity. I have seen the (MSCI) ESG rating which is good, but I'm looking for indicators of integrity in a company separate from environmental factors. I ...
1 vote
0 answers
47 views

What is the point of being able to exercise Dissenter or Appraisal Rights in a publicly traded company?

In the Interactive Brokers list of fees for Corporate Actions & Dividend Processing, there is a "$100 + external costs" fee for "requests to exercise Dissenter or Appraisal Rights&...
2 votes
3 answers
265 views

Where do US public companies announce news?

Where do US public companies announce significant news such as dividends, stock splits, new bond offerings, divestitures, mergers and acquisitions, hiring and resignations of corporate officers, etc.? ...
2 votes
1 answer
155 views

Is it important for OTC-traded companies to have independent directors? [closed]

Most companies that are traded in the US over-the-counter stock market do not have independent directors, but some do. Should the existence of independent directors in OTC companies be considered a ...
1 vote
2 answers
228 views

Do corporate executives have a fiduciary duty to maximize the value returned to investors?

I have repeatedly heard that corporate executives have a fiduciary duty to maximize the value returned to investors. I have also repeatedly heard exactly the opposite: that there is no requirement ...
2 votes
1 answer
162 views

Which laws prevent a corporation with a 51% stake in another firm from exploiting the minority shareholders?

What are the relevant laws which prevent a corporation with a majority stake in another firm from acting against the interests of the minority stakeholders? Such a corporation could, for example, use ...
1 vote
0 answers
89 views

How does a "Control Dispute" arise?

I was reading the OTC Markets glossary: Control Dispute — A Control Dispute occurs when multiple parties claim control of a company. OTC Markets Group does not determine control or work to resolve ...
0 votes
1 answer
84 views

How important is it to read a company's articles of incorporation and corporate bylaws before buying its securities?

I am advised to read bond prospectuses before buying bonds because "every bond issue is different". The same advice is also given when investing in preferred stocks. When it comes to buying ...
40 votes
2 answers
5k views

How close is the fate of Berkshire Hathaway tied to Warren Buffett?

We all are humans. Humans are mortal, and so is Warren Buffett. Given that he is an elderly man close to 90, it is quite likely that he will pass away in the next few years. Sad events like these ...
-2 votes
3 answers
403 views

Why don't companies issue more shares to create corporate empires?

Why can't companies grow ever-larger into corporate behemoths by funding a large number of acquisitions using shares? Shares are like currency that the company can mint on its own. Surely management ...
3 votes
1 answer
1k views

Who gets paid when a company is sold? [closed]

If the company is listed and publicly traded (=traded on a stock exchange), then you get paid according to the value of the stock you own. But what happens if you are the founder of a company and you ...
0 votes
3 answers
136 views

Why do managements dislike low stock prices? [duplicate]

From reading various books, I am under the impression that managements usually dislike it when their stock price gets too low. I am not sure why. So my questions are: Given that the job of management ...
2 votes
0 answers
83 views

Can companies raise cash by selling covered call options on their treasury stock?

Suppose a company has lots of treasury shares. Can it raise cash by selling call options covered by the treasury stock? If the stock price ends below the strike price of the calls sold, then the ...
0 votes
1 answer
46 views

Does management try to influence stock prices?

I have some questions about the relation between corporate management and the stock market that I think will impact my personal investments: Does the management of public companies try to influence ...
8 votes
3 answers
8k views

What happens to my vote if I don't return a proxy form?

I sometimes get proxy solicitations for stock that I have. If I do not return the form and do not vote, what happens to my voting rights? Does somebody else get them? For example, lets say a company ...
1 vote
2 answers
716 views

Why Would a Company Change Restricted Stock Units (RSUs) Vesting Plan?

My company gives out Restricted Stock Units (RSUs) each year. The RSUs used to vest 100% on the 3rd year after granting them. This year they have changed the plan, and instead they vest 25% of the ...