rate fixed at the Annual General Meeting (AGM) depending on the profit available for a particular year. The rate of dividend also varies from year to year. The preference shareholders contribute capital to the company. According to section 85 of the Companies Act‚ 1956‚ persons holding preference shares‚ called preference shareholders. They are assured of a preferential dividend at a fixed rate during the life of the company. This type share holders carry
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What is a closely held business? When a business has very limited number of shareholders then this is called closely held business. This thing usually exists in family businesses. Their shares are publicly traded on occasion but very rare. To whom does a director owe a fiduciary duty? Directors owe a fiduciary duty to corporation‚ as such; directors must ensure the corporation’s interests always priorities. It is the fiduciary duty of the director to act honestly and in good faith‚ with a view
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What is bonus issue of share? A bonus share is a free share of stock given to current shareholders in a company‚ based upon the number of shares that the shareholder already owns. While the issue of bonus shares increases the total number of shares issued and owned‚ it does not change the value of the company. Al though the total number of issued shares increases‚ the ratio of number of shares held by each shareholder remains constant. Relation between stock split & bonus issue of share: In both
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Managerial Behaviour and the goals of management have long been identified by many as independent of the goals of shareholders . Two models have attempted to explain why the goals are different and how these goals are achieved; Baumol’s Theory of Revenue Maximisation and Marris’s Model of Managerial Enterprise . Initially the Two models will be briefly explained. Then‚ by reference to determinants of managerial remuneration‚ the empirical evidence of the occurrences of the determinants‚ the two models
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Nature of Breach • A) Duty of loyalty: The duty of loyalty mandates that the best interest of the corporation and its shareholders takes precedence over any interest possessed by a director‚ officer‚ or controlling shareholder o i) Self-Dealing: Any time a corporation is in a transaction where a director‚ officer‚ or majority shareholder is on the other side‚ and the corporation is exchanging too much for what it is receiving; such a transaction is not invalid unless
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corporation‚ the relationship between agency problems and the goal of shareholder wealth maximization‚ successful and unsuccessful ways in which agency problems between managers and owners have been addressed‚ the relationship between agency conflicts and options given to managers‚ and thoughts regarding the ultimate goal of the corporation. Into the early 1900s‚ most managers seemed content to work toward maximizing shareholder wealth in return for large salaries. However‚ by the 1920s‚ this accord
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Fligstein and Shin’s (2007) article explores the cause-effect relationship between shareholder value strategies and profitability. I believe‚ however‚ that we can go deeper and say that this relationship illustrates human nature itself and how we‚ as stakeholders or managers‚ are actually mostly the problem if we view shareholder value maximization as the path to profitability and hence success. We tend to follow our own interests and have a short-term focus if our capitalistic system is incentivized
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Acquisition of Consolidated Rail – Case Study 1. Background Info - Conrail 1.1. Formed from the remains of the six bankrupt North-eastern railroads in 1973 1.2. Earned its first profit in 1981- $39.2m on revenues of $4.2bn. Privatised through an IPO in 1987 1.3. Major player in North-eastern cities and their connection with major Mid-western hubs 1.4. In 1995‚ had 23‚510 employees‚ operated 10‚701 miles of track and controlled 29.4% of the eastern rail freight market 1.5. Financial indicators-
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Sports Products‚ Inc. to resolve the issues‚ changes need to be made in the way it operates. OVERRIDING GOAL The primary goal of a firm should be to achieve the objectives of its owners‚ also known as shareholders; therefore‚ management of Sports Products‚ Inc. should pursue maximizing shareholder wealth as its overriding goal. The current objective of Sports Products‚ Inc. has been to maximize profits‚ but "profits do not necessarily result in cash flows available to the stockholders" (Gitman‚ 2006
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|Company Accounts | |Accounting for Share Capital 1 | | | | |
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