The paper "Governance in a Globalising World" is an outstanding example of a business assignment. Companies established under the law have a duty to conduct Annual General Meetings (AGMs) that provide a forum for shareholders to carry out certain rights to ensure that their interests and perhaps public interests are protected. More fundamentally, shareholders exercise these rights because they are members of a company in question. These members may be individuals holding shares, institutional investors, and proxy advisers (Deloitte 2016). AGMs offer a forum for the shareholders’ participation in evaluating the directors’ accountability and engagement.
For instance, elections provide shareholders with the opportunity to implement their resolutions to impact the decisions of the board. A good example is the Australian Shareholders Association’ s calls to have Rob Murray, the board chairman of Metcash to stand for elections because he has declined the offer to resign. Such a move implies that the rights and influence of shareholders cannot be ignored by boards of organizations. Shareholders have the right to pass and scrutinize the annual financial reports of a company based on the information presented.
Secondly, shareholders have voting rights during such meetings, especially if the executive and non-executive directors are supposed to be elected. Thirdly, the shareholders have the right, during AGM, to pass and adopt resolutions reached the meeting. They have the right to ask the directors to account for their practices, performance, and remuneration packages that they enjoy (Deloitte 2016). Fourthly, shareholders have different information rights, for instance, access to the annual reports during an AGM and the right to participate in the meeting and other specified meetings. Additionally, they can only vote on or propose resolutions within their powers.
Shareholders, in some circumstances, can initiate derivative proceedings on a company’ s behalf. However, it must be noted that according to the existing legislation on companies and ASX listed companies’ procedures, the rights of shareholders are limited in the decision-making process because of the limitations placed on their obligations.
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IBU5GW, Week 8, Anglo-American governance.
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