CHAPTER 6
Ownership Governance
There are two major tools for the governance of ownership: the shareholders council and the annual shareholders meeting (also called the annual shareholder meeting or the annual general meeting, AGM).
The Shareholders Council
The purpose of the shareholders council is to bring stockholders together to communicate, disseminate knowledge, and to make decisions by voting. The stockholders hear from upper management concerning the progress of the firm for the last quarter and their future plans for the business.
When a family firm is small, the family council will usually serve the purpose of the shareholders council. When the firm grows in sales, number of generations, and the number of shareholders, it becomes a prudent ...
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