Corporate Governance: The Internal Affair of Corporations

4 important questions on Corporate Governance: The Internal Affair of Corporations

Key common law defence available to directors and officers

Business judgement rule

Shareholders return on investment

1. Dividends
2. Growth from selling their shares

Risks to shareholders on new shares being issued

1. Will reduce the proportion of total shares that a current shareholder holds
2. Existing shares will be diluted if new shares are issued at a lower price
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Unanimous shareholder agreement

Agreement to which all shareholders are parties

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