Corporate Law Assignment Example | Topics and Well Written Essays - 2000 words

Corporate Law - Assignment Example The minority shareholders are often acknowledged as institutional investors among different business entities who play a limited function in influencing the background of corporate governance construction. This is majorly due to the fact that the presence of the majority shareholders within a business firm owning the rights to partially control its decision making process often facilitates significant sources of conflicts affecting the interests of the minority shareholders. It is worth mentioning in this regard that the minority shareholders posses certain rights which may be accessible in accordance with any ‘state close corporation laws’. These rights generally include amending corporate by-laws, voting during the election of the directors and organizing as well as managing annual meetings related with the shareholders among others as mentioned in the articles of association and memorandum. It has often been observed that the minority shareholders or the institutional investors find it to be quite challenging to exercise the aforementioned rights in a smooth way witnessing minimum disruptions. This is simply because the majority shareholders tend to dominantly control the business operations as they bear large proportion or percentage of shares along with various decision-making rights concerning the corporate governance structure of the particular entity. As the majority shareholders possess a maximum quantity of shares, it has been viewed that the interests of minority shareholders are being oppressed by several means.