Corporate democracy and the rights of shareholders
Journal of Business Ethics · 1988 · Volume 7 · Issue 1
Abstract
Some have argued that because of weaknesses in corporate democracy, there is widespread abuse of shareholders' rights in American securities markets. I describe a number of “horror stories” that shareholders might tell to support this claim. Then I argue that despite appearances to the contrary, there is not widespread abuse of shareholders' rights in American securities markets. This is because (i) corporations, when doing things that look abusive, are generally violating neither the legal rights nor the “charter” rights of shareholders and (ii) shareholders — in their role as shareholders — have no other rights than these.
Keywords
Economic Growth, Security Market, Horror Story, American Security, Widespread Abuse
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