Shareholders - 2 types

Small investors with minimal shareholdings &

Institutional investors- Hedge funds, Insurance Companies

Agency Costs to the Shareholders

Attending meetings, studying company results and
general contact with the company

Shareholders - their link to CG

Why do shareholders get involved in company affairs......

Shareholders - their link to CG

Institutional investors hold large shareholdings and thus can 
exert more power!!!!!!

Shareholders - their link to CG

Shareholders will step in and get involved in company affairs for
the following reasons..........

Shareholders - their link to CG

1. Concerns over strategic direction of the company 
2. Consistent under-performance

Shareholders - their link to CG

3. NED's not performing their duties properly 
4. Internal controls failing

Shareholders - their link to CG

5. Companies failure to comply with:-

Regulatory, Legal and Accounting responsibilities

Shareholders - their link to CG

6. Are the directors paying themselves too much?
7. Evidence of a poor attitude from the co. towards CSR

Shareholders - their link to CG

In summation - all reasons why the shareholders get involved
have a direct link back to the CG of a Co.

Stock Exchange

Responsible for:- 
Rules for companies looking to list on the Stock Exchange

Additional requirements above existing company law!!

Auditors/Regulators

Auditors

The audit itself is a very sound form of good CG.

Auditors/Regulators

Regulators: - will be inclusive of government agencies

They control and manage any risk of monopoly within markets and
supply the basic need of water,electricity etc etc