ISSN (E): 2181-4570 ResearchBib Impact Factor: 6,4 / 2023 SJIF 2024 = 5.073/Volume-2, Issue-5
482
Literature review.
In today’s dynamic financial landscape, the importance of shareholder rights
cannot be overstated. Shareholders play a vital role in corporate governance and
decision-making processes, ensuring transparency and accountability and ultimately
protecting their investments. This section explores the importance of shareholder rights
in promoting a healthy and prosperous economy.
Shareholders are vital to a company and arguably the most important role within
a business. Shareholders have the ability to appoint and fire directors, oversee accounts
to gain a financial health picture of the business as well as decide on the dividend payout
percentage(Dan Edwards,2023). As
Kumar Gourav
said,
Shareholders thereby play an
important role in the functioning of a company. They have various rights which include
the appointment of the company’s director, auditor etc., to voting rights and having a
say when the company goes insolvent. With every right, comes a corresponding
responsibility which the shareholder must carry out diligently(Kumar Gourav, 2018).
Besides, shareholders may have conflicts of interest with other interested parties, such
as employees or customers. For example, shareholders may push for cost-cutting
measures that would benefit them financially but harm employees or the environment.
This conflict of interest can create tension and affect a company's reputation.
Shareholders play a vital role in a company's success. Their financial support,
accountability, giving back and impact on corporate social responsibility can have a
significant impact on a company's performance. However, conflicts of interest may
arise and companies must balance the interests of all stakeholders to ensure long-term
success(Faster capital,2024).
