The Rights and Equitable Treatment of

Shareholders and Key Ownership

Functions

Background
Equity investors have certain
property rights
The corporation cannot be managed
by shareholder referendum
Shareholders rights to influence the
corporation

Basic Shareholder Rights

Secure methods of ownership
registration
Convey or transfer shares
Obtain relevant and material
information on the corporation on a
timely and regular basis
Participate and vote in general
shareholder meeting
Elect and remove members of the
board

Shareholder rights in corporate

changes
Amendments to the statutes
The authorisation of additional
shares
Extraordinary transactions, including
the transfer of all or substantially all
assets , that in effect result in the
sale of the company

Shareholder rights in general

shareholder meeting
Sufficient and timely information
concerning the date, location, and
agenda of general meetings
Process and procedures for general
shareholder meetings should allow
for equitable treatment of all
shareholders
Opportunity to ask questions to the
board

Shareholder rights in general

shareholder meeting
Effective shareholder participation in
key corporate governance decisions
Shareholder should be able to vote in
person or in absentia
Impediments to cross border voting
should be eliminated

Shareholders, including institutional

shareholders, should be allowed to consult
with each other on issues concerning their
basic shareholder rights as defined in the
Principles, subject to exceptions to prevent
abuse.

All shareholders of the same series of a class

should be treated equally. Capital structures
and arrangements that enable certain
shareholders to obtain a degree of influence
or control disproportionate to their equity
ownership should be disclosed.

Related-party transactions should be

approved and conducted in a manner that
ensures proper management of conflict of
interest and protects the interest of the
company and its shareholders.

Minority shareholders should be protected

from abusive actions by, or in the interest of,
controlling shareholders acting either
directly or indirectly, and should have
effective means of redress. Abusive selfdealing should be prohibited.

Markets for corporate control should be allowed to

function in an efficient and transparent manner.

Case
Question 1
In cases of companies where there are controlling
shareholders, explain why the interest of controlling
and minority shareholders may diverge, using the
CK Tang case as an example.
Perbedaan interest dapat terjadi karena pada
perusahaan yang memiliki controlling shareholders,
mereka cenderung ingin menguasai perusahaan
agar perusahaan tersebut dapat berjalan sesuai
keinginannya dimana minority shareholders
cenderung ingin mendapatkan keuntungan atau
dividen baginya.

Case
Question 2
Should independent directors be primarily
concerned with the interests of the minority
shareholders?
Independent directors seharusnya dapat
menjadi orang yang melindungi interest
dari minority shareholders karena director
lain mungkin memiliki hubungan dengan
controling shareholders dan mengabaikan
minority shareholder interest