voluntary organization or association of shareholders; 2. Legal person: It is a legal or an artificial person as a result of law. It has no physical existence; however‚ it functions as a separate and independent legal person. Legal person is distinct from the shareholders and the directors of the company; 3. Perpetual succession: The joint stock company has a perpetual or continuous succession under the law because it continues to exist even if some shareholders or directors die or become insolvent
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Definition of ’Agency Theory’ A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving problems that can exist in agency relationships; that is‚ between principals (such as shareholders) and agents of the principals (for example‚ company executives). The two problems that agency theory addresses are: 1.) the problems that arise when the desires or goals of the principal and agent are in conflict‚ and the principal is unable to
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directors are agents of the company‚ they are accountable to shareholders and to stakeholders in various guises. It is also clear that as a custodian of something that does not belong them‚ directors owe a fiduciary duty of care to safeguard the company’s assets and maximize returns for shareholders and to ensure that the other stakeholders needs are met as well. The principle that a company is a legal entity by itself and separate from its shareholders‚ directors and managers also lent to the need for directors
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usage of energy. By complying with UK Corporate Governance Code 2016‚ Kingspan showed its engagement with shareholders
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the existing shareholders without receiving any additional payment from them‚ it is known as issue of bonus shares. Bonus shares are allotted by capitalizing the reserves and surplus. Issue of bonus shares results in the conversion of the company ’s profits into share capital. Therefore it is termed as capitalization of company ’s profits. Since such shares are issued to the equity shareholders in proportion to their holdings of equity share capital of the company‚ a shareholder continues to retain
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Nkono Moanang 1009040 CORPORATE GOVERNANCE AND BUSINESS ETHICS ASSIGNMENT TOPIC: Principals (shareholders) – agent (managers) problem represents the conflict of interest between management and owners. For example‚ if shareholders cannot effectively monitor the managers’ behaviour‚ then managers may be tempted to use the firm’s assets for their own ends‚ all at the expenses of shareholders. Discuss the pros and cons of this statement with regard to duties of Board of Directors.
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23‚750 | Intangible Assets | | 100‚000 | TOTAL ASSETS | | 563‚125 | | | | LIABILITIES AND SHAREHOLDERS’ EQUITY | | | Current Liabilities | | | Accounts Payable | | 0 | Total Current Liabilities | | 0 | Shareholders’ Equity | | | Capital | | 500‚000 | Retained Earnings | | 63‚125 | Total Shareholders’ Equity | | 563‚125 | TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES | | 563‚125 | 2) Income Statement for the year ended 12/31/2003 Net sales
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2014. Generally‚ the Malaysian dividend system has undergone a complete overhaul in 2008 with the objective of providing companies‚ shareholders and the government with a simple‚ transparent‚ efficient and equitable system. With effect from Year Assessment (YA) 2008‚ a single tier dividend system replaces the tax imputation system on dividend payments to shareholders. All the changes from changing of dividend system have arisen as a result of legislative amendments introduced by Finance Act 2007 (Act
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A joint-stock company is a business entity which is owned by shareholders. Each shareholder owns the portion of the company in proportion to his or her ownership of the company’s shares (certificates of ownership). [1] This allows for the unequal ownership of a business with some shareholders owning a larger proportion of a company than others. Shareholders are able to transfer their shares to others without any effects to the continued existence of the company. [2] In modern corporate
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the company’s debts and taxes are separate from its owners (shareholders)‚ thereby‚ offering the greatest personal liability protection of all business structures. A company is an artificial "legal" person. It is owned by shareholders who have limited liability (i.e.‚ they are not personally responsible for the company’s debts). A company is run by directors. Because the company continues to exist even after the death of a shareholder‚ it offers tremendous estate planning advantages. In addition
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