A corporation is a fascinating entity. It represents a separate legal entity and encompasses thousands and millions of people. Customers, employees, shareholders and many others are connected together by a corporation, yet a corporation is ultimately lead by only one person, who may end up damaging the company for their own good.
During the course of the next few weeks I want to examine shareholders. Even in the current market people are still willing to buy a tiny piece of a company. While investors would never dream of backing a small start up company they will still back a huge corporation. Yet, as mentioned above they may have little or no actual power in the company.
Nearly everyone knows about Enron and the scandal that the CEO's created, but the shareholders who faced that nightmare learned from the experience.
Enron shareholders feel vindicated by Gayle B. Ronan, talked with several shareholders and their feelings about the lawsuit. Most felt relieved that the CEO's would be held responsible in a court. This is a concept that I hope to discuss later. The CEO's may have been fired, but what if any responsibility do they have to the shareholders? How do large corporations such as Walmart conduct their voting? I hope to look at these and other such issues in this blog at a later date.
» http://www.msnbc.msn.com/id/12985808/
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