recommendations on the issues mentioned by you as follows: Applicable Laws: As for the compensation, which is supposed to be paid to the shareholders of the company, there are some strict regulations under IRC and supporting authorities acting for the same. No compensation can be provided to any shareholder more than the amount paid to any other shareholder of the company is the same situation and circumstances. Redemption of stock held by the company is also considered as the compensation to the
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Customers found that the productions which from Odwalla are not safe, they may stop buying them which may cause the low sales. As another stakeholder in this case, the shareholder of Odwalla should make efficient decision which could get the company out of the trouble. I think what they should do is to recall the product from the stores which they supplied to. Also, providing some safety solutions which would be more effective. Another thing which they could do is to reform the company in terms of
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Danielle Fikes BUS 499 March 10, 2011 Assignment 5 1. Describe how successful the business has been at recognizing and satisfying stakeholder interests. The sisters of Harry McNeely and Don McNeely were stock holders and their interests were being completely ignored. Whether you are family or not, if an individual is a stock owner, their voice is to be heard considering they own part of the company that is bringing in income. According to definition, a stockholder is, "one who owns
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Estate of Leavitt v. Comm Facts: As shareholders of VAFLA Corporation, an S corporation, the appellants claimed deductions to reflect the corporation’s operating losses. The commissioner disallowed deductions above the $10,000 bases from original investment. The appellants contend that the adjusted basis in their stock should be increased to reflect a $300,000 loan. The loan was obtained by VAFLA from bank and was guaranteed by the shareholder-guarantors. VAFLA made all of the loan payments, principals
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usually big wigs are reluctant to change their own culture of following rules to the letter like traditional big companies to an upbeat style of Southwest. Instead of satisfying customers, maximizing shareholder value takes priority and this choice could be detrimental to the divisions’ cause (shareholders may also not be happy at the prospect of operating at a loss); this case has been proved in the form of Continental Lite. When the bosses are fixed in maintaining their company’s own identity culture
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rather thanBlockbuster stock? Ans. Many Cityvision stockholder sell for cash rather than Blockbuster stock because – In cash transaction acquiring shareholders take all the risk that theexpected synergy value embedded in the acquisition premium will notmaterialize, where as when we deal is stock the risk is spread andshared with the acquired shareholders too.In a cash deal it is pretty clear who is acquirer and who is acquired,when it comes to stocks and the stock value can change at any time.A really
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2. What are the differences between shareholder wealth maximization and profit maximization? If a firm chooses to pursue the objective of shareholder wealth maximization, does this preclude the use of profit maximization decision-making rules? Explain. The profits maximization refers to how much dollar profit the company make. Unlike the profits maximization, the definition of shareholder wealth maximization states that management should seek to maximize the present value of the expected future
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Stockholders only really have diluted voting rights that don't really count for much. It's only the big shareholders that will weild any influence as they have bigger piece of the pie. Investment bankers and Wall St guru's (institutional investors) can hold powerful voice and a lot of influence and sway when it comes to looking after their clients and determining whether they keep their interest in certain companies. So if you're a small stockholder there's not much of a chance but as a collective
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THE CORPORATION CODE OF THE PHILIPPINES [Batas Pambansa Blg. 68] TITLE III BOARD OF DIRECTORS/TRUSTEES/OFFICERS Sec. 23. The board of directors or trustees. Sec. 24. Election of directors or trustees. - At all elections of directors or trustees, there must be present, either in person or by representative authorized to act by written proxy, the owners of a majority of the outstanding capital stock, or if there be no capital stock, a majority of the members entitled to vote. The election must
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that the fiduciary have towards their clients or shareholder. This relationship it’s based on the trust that clients/shareholder have in the Management or in the financial institution; besides these are delegated to satisfy the interests and the needs of client/shareholder, without taking advantage from their position ( potential conflict of interests). Cite; and explain The fiduciary duty it’s the relationship that exist between shareholders and top management, and between clients and financial
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