by Jason M. Gordon | Feb 23, 2025 | Business Entities, Corporate Governance & Ownership
What is the Sarbanes-Oxley Act? The Sarbanes-Oxely Act (SOX) is the primary federal law governing corporate governance and accountability across multiple aspects of corporate business practice. SOX specifically regulates markets, brokers, dealers, accounting and...
by Jason M. Gordon | Feb 23, 2025 | Business Entities, Corporate Governance & Ownership
What is the role of shareholders of the corporation? Shareholders are the owners of the corporation. They have ownership rights in the shares of corporate stock. The role of the shareholder in the corporation is limited, however, as they have neither the right nor the...
by Jason M. Gordon | Feb 23, 2025 | Business Entities, Corporate Governance & Ownership
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...
by Jason M. Gordon | Feb 23, 2025 | Business Entities, Corporate Governance & Ownership
Anti-takeover Measures in Corporate Governance When an acquirer attempts a hostile takeover, boards of directors commonly institute measures to thwart the acquirers attempts to gain control of the corporation. Some common measures employed are as follows: Shark...
by Jason M. Gordon | Feb 23, 2025 | Business Entities, Corporate Governance & Ownership
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...
by Jason M. Gordon | Feb 23, 2025 | Business Entities, Corporate Governance & Ownership
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...
