Discuss some ways in which a board of directors might maintain its independence from management ?
Discussion Questions 1. Discuss some ways in which a board of directors might maintain its independence from management ?
2. Sometimes, stockholders are not satisfied with a company’s financial performance, how the com-
pany is being managed, and even how effective the board is. What can they do about the situa- tion, especially when some stockholders hold few shares in the company?
3. In the case of very large corporations, institutional stockholders hold substantial blocs of stock in the company. Is it possible that they wield too much influence in stockholder voting? Should this be cause for concern on the part of a small stockholder?
4. Shareholder “activists” who hold stock in many companies are particularly vocal about “keep- ing corporations honest” and ethical and making sure they represent all stockholders’ interests. Often, such dissatisfaction takes the form of coming up with an alternative slate of directors to be voted on at the annual general meeting, thus making the process very political. Is this a good thing for corporations and their stockholders?