BUS2 365 Lecture Notes - Lecture 12: Market Discipline, Social Inequality, Cumulative Voting
5 Mar 2018
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Document Summary
Corporate management (a) the role of management. Big questions for remainder of term: control and accountability. Overview: the role of management, does reality (of big corps) match up with theory, assuming management positions, management compensation 16046$ In theory: directors have most power: traditional model of corporate governance, corp is managed for benefit of shareholders alone (shareholder primacy imbedded here). In 19c, more common to see ultimate legal control and ownership (functions. Critique: it is mute: i(cid:374)flue(cid:374)(cid:272)e of (cid:272)apital (cid:373)arkets o(cid:374) shareholder (cid:271)eha(cid:448)iour: e(cid:448)e(cid:374) if shareholders do(cid:374)"t have legal power over crop, they can exercise significant market discipline over managers through their behaviour. Assuming management positions: qualifications of directors, minimum qualifications: nature persons, no minors, no bankrupt persons, and of sound mind. No other qualifications: cbca s. 105(1, qbca s. 108, ccq art. For public, at least 3 directors and at least 2 indep: again, no qualifications, cbca s. 102(2, qbca s. 106, elections and appointments.
