Overview and Conclusions
This book began by dividing companies into three broad categories, and identifying the most commonly expressed complaints of minority shareholders in each category of company. It is therefore appropriate to end by examining the extent to which solutions can be found to those complaints.
As regards listed companies, institutional shareholders can be distinguished from other categories of minority shareholder because although no single institution may have a controlling shareholding in a company, collectively institutions will usually own a substantial majority of its shares. This creates opportunities for self-help in the form of collective institutional pressure.
The influence of the institutions has the potential to combat all of the identified complaints, either by direct action or by the introduction of structural changes. To the extent that these measures are successful, they generally benefit all shareholders, except that the institutions' very success in establishing better lines of communication with the companies in which they invest has arguably weakened the channels of information which are available to all shareholders. The area in which institutional activism has probably had least success is in preventing self-interested conduct by the directors, particularly in respect of remuneration. This is at least partly
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Publication information: Book title: Minority Shareholders' Remedies. Contributors: Elizabeth J. Boros - Author. Publisher: Oxford University. Place of publication: Oxford. Publication year: 1995. Page number: 319.
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