Shareholders interest

Abstract

The purpose of the scientific paper is to analyze the benefits of well-managed companies and the role of shareholders’ participation in the control of the company as well as shareholders’ relations with the board of directors, which is considered as one of the major factors of such a control. This work, first of all, deals specifically with the importance of composition of the board of directors for the shareholders interest. The relationship between shareholders and the board of directors and how shareholders indirectly take part in control of a company were analyzed in this paper. Dismissal options and changes of the Board of Directors by shareholders in different countries of the world are also considered. Every member of the company wants their company to be well managed, because it can ease manager-shareholder conflicts and safeguard not only shareholders interests but also non-shareholders interests. The author emphasizes that the activity of a shareholder is not a privilege. First of all, a shareholder must act responsibly. When a shareholder invests in a company, he owns a part of that company and becomes responsible for the progress of the company. The author concludes that the creation of the composition of the board of directors, the right to appoint and remove directors are preconditions to maintain a balance between management powers and shareholders interests in a company.