Assessing the potential impact of institutional investors on corporate Dissertation

Assessing the potential impact of institutional investors on corporate governance in China - Dissertation Example .................................................................... p.10 Literature review ..................................................................... p.10 Conclusions ..................................................................... p.31 References ..................................................................... p.37 ABSTRACT Examples are given pertaining to the development and present situation of Western institutional investors. Also under discussion is the practice of Western/Anglo institutional investors towards an increasing participation in the corporate governance in a proactive way. The methods and procedures of institutional investors participation in corporate governance is described, with American and British examples – and how these institutions pertain to China. Analysis is given describing the development of the corporate culture that leads to a more active role in governance, and how the assumptions thereof have evolved over time. Both the p ositive and the negative of institutional investors on corporate governance are described, with respect to a term corporate interests. Challenges relating to foreign investments in China are described in this context. The current status of investors and the losses they have suffered due to transitional effects in the Chinese economy are extrapolated based upon a shifting legal and financial landscape as China modernizes its economy. Recommendations to alleviate these concerns are proposed. INTRODUCTION The advent of high finance and its utilization in the operations of Incorporated business organizations created a situation many decades ago in which it was recognized that owners and shareholders need not always see eye to eye. The directors that oversee functional operations over day-to-day matters do not always have the same vested interests as the shareholding owners of the corporation. The interests of operational control may not match the objectives of other individuals interest ed in a slow and steady growth of assets and equity. But the considerable benefits of ownership by way of investment have been recognized for nearly the entirety of the 20th century, thus investors by necessity must gain certain rights and privileges. The role of these investors is an evolving understanding that balances the nuances of organizational agility against long-term growth. Theories of corporate governance must be developed to define the responsibilities of investors and the degree to which they can influence operations without stressing corporate resources beyond their ability to perform. (Davis, 2002) Possible examples might include the director/executive officer, who may have founded the business wanting to maintain control possibly for sentimental reasons – the business might have been in his family for many years. Or, the business might be a valuable source of jobs for a particular local community. But the investors that can help a business rise to the world st age might feel that their interests are best served through mergers or takeovers that permit a favorable return on investments based upon various stock options and projected share values. Certain individuals may perceive a loss of livelihood, and thus oppose measures that will increase the profits of those that have injected vast amounts of capital to make the business what it is. Arbitration and compromise are necessities. OVERVIEW Over three decades institutional investors have superseded private individual shareholders in the world's most important capital

Tort of law Essay Example | Topics and Well Written Essays - 1500 words

Tort of law - Essay Example Section 1 of Compensation Act reaffirms the present common law, and it should be noted that it was not meant to transform the law but to only to transform the perception among the public mind. (Lunney & Oliphant2008:178). Under English common law, an action for infringement of statutory duty can be initiated if an individual has suffered damage due to a breach of a statute and can initiate an action in tort as regards to such damages. In such cases, the claimant has to establish that the defendant had failed to carry out his legal duty in this regard. Thus, there is no necessity to prove whether such breach of duty was either negligent or intentional. It is to be noted that in Couch v Steel1, it was held that whenever there is an infringement of a law provision which resulted in damage to an individual interest, a right of action can be initiated under tort. However in Groves v Lord Winborne 2 and in Atkinson v New Castle and Gateshead Waterworks Co 3 which were the leading nineteent h century cases which strikingly barred the ambit of the tort, and demanded that any individual claim for infringement of statutory obligation must first prove that the legislature had an intent that an infringement of such individual’s interest or right should be tortuous. Lord Denning MR in Ex p Island Records Ltd held that if a private right is being hindered with by a criminal act, thereby resulting in a special damage over and above the generality of the public, then, under such scenarios, such individual can approach the court as a private individual and prey that his private rights should be safeguarded. (Murphy & Street 2007: 492). In establishing the standard of care, the courts will also look into any pertinent social utility linked with the defendant’s conduct. This includes fortitude of the general public interest so that issues other than just in dispute between the defendant and the claimant may be taken into account in evaluating the standard of care nee d of the defendant. (Murphy & Street 2007: 101). However, now, the English courts are giving due importance to the social utility of would be respondent activities, which have been now given statutory force. The section 1 of the Compensation Act 2006 now provides that where a court is judging a claim of negligence, it will, in establishing the needed standard care, â€Å"have a conscience to whether there is a need to take those actions which are required to meet that standard might be a) bar a proposed activity from being perused at all, to a specific magnitude or in a specific way, or b) dissuade such individuals from perusing such activities in relation to such desirable activity.† (Murphy & Street 2007: 102). In Anns v. Merton London Borough Council4, the plaintiffs were the lessees of a group of flats owned by the defendant. The lessees subsequently discovered that the flats were constructed with inadequate foundations. In this case , the House of Lords confirmed the fin dings of the Court of Appeals that plaintiffs could initiate an action against the defendants for the cost of repairing the foundations.( Christie 2000:123). In Stovin v Wise5 , it was held that even where the administrators have entered into some type of action to prevent the third party, and if they carelessly skip some probable â€Å"