- 4 Marks
CSEG – May 2017 – L2 – Q6b – Corporate governance framework
Identify four measures shareholders may seek to resolve agency problems in corporate governance.
Question
Agency problems are inherent in static corporate structures. This conflict arises when separate parties in a business relationship, such as a corporation’s managers and shareholders, have disparate interests. Corporations employ several dynamic techniques to circumvent static issues resulting from agency problems.
Required:
Identify FOUR measures which shareholders may seek to resolve any agency problems that arise. (4 marks)
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