RECENT ARTICLES

What is a Hostile Takeover?

What is a hostile takeover and what effect does it have upon corporate governance? A hostile takeover is where a third-party acquirer seeks to purchase a controlling number of outstanding shares without the endorsement or approval of the target companys board of...

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Delay Tactics – Hostile Takeover Defense

Buying Off Acquirer Often the corporation will attempt to provide benefits to the acquirer that will incentivize it to give up its efforts. These efforts are generally not in the best interest of existing shareholders and can lead to litigation. Target Share...

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Role and Purpose of Corporate Entity Form

What is the role and purpose of the corporation? The concept of the corporation originated through governmental charter allowing individuals to carry on business collectively. Basically, the charter gave the corporate entity form legal status that was similar to...

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Agency Theory of Corporate Governance

What is agency theory and why is it relevant for the business entity? Agency theory posits that corporations act as agents of its shareholders. That is, shareholders invest in corporate ownership and thereby entrust their resources to the management of the directors...

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Corporate Governance and the Dodd Frank Act

What is the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank)? Dodd-Frank was passed in response to the financial downturn beginning in 2007. While Dodd-Frank imposed extensive controls on banks and other lending institutions, it also prescribed...

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