Answer theses question fully and in detail. These questions are related to ASX Corporate Governance Council...

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Accounting

Answer theses question fully and in detail. These questions arerelated to ASX Corporate Governance Council requirement for alllisted companies to have a majority of "independent" boardmembers.
1. What new agency conflicts would be created if director’sindependence was compromise in regards to holding significantshareholdings in the company?
2. Statistic for Australian company's failure due to directorsindependecy comprosmised?

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3.6 Ratings (338 Votes)

1In the US directors often have a duty of loyalty toward the companys shareholders The idea of maximizing shareholder value came from Milton Friedman who proposed that executives and directors should focus solely on creating value for shareholders Others argue that since the directors and executives are paid by the company they are employees of the company not of the shareholders so they should thus focus on the interests of the company rather than on those of the shareholders According to Lynn Stout a distinguished professor of corporate and business law at Cornell Law School shareholder value maximization is a choice not a legal requirement The assumption that shareholders are principals and that directors are their agents is legally incorrect Corporate law clearly states that shareholders cannot control directors or executives They have the See Answer

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