BUS 17 Lecture Notes - Lecture 11: In Private, Quartile, Insider Trading
Document Summary
Director appointments arise: on the initial incorporation of a company, on reappointment of the expiry of a director"s term of office, to fill a vacancy, on the creation of an additional directorship. The rotation of directors: a fixed proportion of the directors retire each year. Can offer themselves for re-election if eligible: the entire board cannot be replaced at a single election. The size of boards: single director boards are prohibited, between eight and ten, a board ceases to be a cohesive. Retirement, disqualification, and removal of directors: company law in some jurisdiction puts an age limit (70) and a minimum age (16/18) Ensure that older directors are making the contribution and are not being re-elected out of a misplaced sense of respect or loyalty. The challenging shareholder has to carry the costs of their campaign. In private companies: decisions are taken by dominant shareholders, e. g. family firms.
