Đang tải... (xem toàn văn)
The relationship between shareholders and management is called an agency relationship. In all such relationship, there is a possibly of conflict of interest between the principal and the agent. Such a conflict is called agency problem. The manager (or the agent) is the person who owns only a small part of the equity of a company, whereas the principal owns the majority of the equity. Due to the separation of ownership and management, there is a problem that managers can act on their own interests more than the interests of the owners, and is an example of moral hazard
COPORATE FINANCIAL IN ENGLISH GROUP : - The Agency problem AGENCY RELATIONSHIP Hare holders stnemegana Possibly of coflict of interest AGENCY PROBLEM …the principal owns the majority of the equity The manager (or the agent) is the person who owns only a small part of the equity of a company… In large corporation the managers are not the owners managers maybe tempted to act in ways that are not in the best interests of shareholders For example: they might buy luxurious corporate cars the director clearly ignores the common or overindulge in expense-account diners good of the business, which should be his ultimate goal the interests of the mandator (the company, the shareholder) and the interests of the mandated (director) are contradictory Lost It They might shy away from attractive but risky projects because they are worried more about the safety of their jobs than the potential for superior profits The shareholders, must seek to ensure that the authorized person (the manager) acts in the interests of the mandator uti Sol on spend rs must e ld o h e shar ve this, To achie : rizati Autho on monitor the performance of managers… …create incentives for managers to pursue maximizing the of shareholders, not just for personal gain Several following arrangements are believed to help shareholders and manager are working toward common goals PLAN compensation schemes encourage management to maximize shareholder wealth .But some schemes are not well designed and in these cases poorly performing managers may receive large windfall gains In the latter, the compensation plans cannot help to eliminate the agency problems As a result, both the group of shareholders and the Board of Management agreed to hire another auditing company to audit the business results For the group of shareholders, the purpose is to find fault with the Board of Directors, the purpose is to prove the clean operation of his In the past years, PNC's shareholder meeting always had problems, because the major shareholders did not approve the majority, even not passed any content submitted at the meeting, or not enough shareholders For the voting shares as required by law to hold the meeting Internal cluttered by experts said that is part of the reason that PNC was suspended trading, controlled, warned for violating regulations on disclosure of information on the market Struggling with the election of additional members of the Board In the Extraordinary General Meeting of Shareholders, only the election of additional members of the Board of Directors, with the number of candidates only one person is Mr Le Lam Vien, while the number needed is people, so he raised the subject Another alternative is to nominate candidates for the Board of Directors by the shareholders participating in the Extraordinary General Meeting of Shareholders, instead of only shareholders or groups of shareholders owning more than 10% of shares for more than months to be nominated However, when voting for this option, the two major shareholders and other shareholders continue to disapprove with the rate of 62.42% Accordingly, only one qualified candidate, Le Lam Vien, was nominated by a group of shareholders holding more than 10% of the share capital before the congress After voting, Mr Vien was elected to the Board of Directors Mr Hoat shared the urgency of the AGM, the noncooperative actions of the major shareholder group will undoubtedly affect the future operation of PNC, as new projects are likely to fail deployment ontinue to be prompted slow information disclosure y the time of 6/2017, Phuong Nam Cultural Joint Stock Company has been reminded by the HoSE for the third time about elayed disclosure of parent company financial information and consolidation of Q1 / 2017 PNC shares of Phuong Nam ultural Joint Stock Company are under special control due to frequent violations of disclosure Southern Culture (PNC): "Civil war ended" At the 3rd extraordinary shareholders 'meeting on 26/10/2017, after many failed times, the final extraordinary shareholders' meeting of Phuong Nam Cultural Corporation (PNC) officially passed a series of issues In the past, there was no common voice between the old leadership and the major shareholder group The submissions submitted to the Extraordinary General Meeting this time include the amendment of the charter, the plan for the dismissal of the Board of Directors and the Board of Supervisors, and the plan for re-election of the Board Members Member of the Inspection Committee for the term 2017-2021 …The meeting approved all contents including 2016 business results, 2017 business targets, auditing units and changed the entire leadership of the Company In 2017, PNC plans to have a total revenue of 600 billion VND, profit before tax of 10 billion VND! ...The Agency problem AGENCY RELATIONSHIP Hare holders stnemegana Possibly of coflict of interest AGENCY PROBLEM …the principal owns the majority of the equity The manager (or the agent) is the... slide and managers don’t offer a credible recovery plan, boards act To solve the problem of the boss and the agent, the owner or major shareholder of the company may be dismissing bad management,... equity contracts to set up a new management team is a good solution for the principals and the agents The problem is that if the management is not be able to run the company effectively, the stock