Define the types of shareholder, Financial Management

Assignment Help:

Tactics can be used by company to protect itself.

Before the bid

Types of

Shareholder

Having the right shareholders on board who can be influenced by the board not to sell their shares. Good relationship with shareholders is vital and this is done through effective communication.

AA

Majority  in articles  of  association  can  be  set  to  high  limits  to  approve  a merger oracquisition.

Poison pills

Shareholders may be given rights to buy shares or convertible loan stocks which in event of a takeover bid are exercised. This will increase share capital and require a larger offer from predator company, thereby deterring them.

Asset values

Ensure asset values of company are current so that a high price needs to be paid for them and shareholders are aware of true price of their share.

 

 


Related Discussions:- Define the types of shareholder

Determination of explicit cost of capital, Determination of explicit cost o...

Determination of explicit cost of capital Approach of determination of explicit cost of capital is similar to the one used to ascertain IRR, with one difference, in case of co

Total return analysis, A trade is assessed on the basis of its perfor...

A trade is assessed on the basis of its performance. Performance can be defined as the expected total return over and above the investment horizon of the trade. T

Irregular variation in time series analysis, Irregular Variation As the...

Irregular Variation As the name suggests, the movement of the variable is random in nature without consistency and therefore, highly unpredictable. Since this type of irregular

When underwriting a new security issue for a corporation, What does an inve...

What does an investment banker do when underwriting a new security issue for a corporation?  When underwriting a new security concern an investment banker buys it and then rese

Explain the sensitivity analysis of burley plc, Sensitivity analysis A ...

Sensitivity analysis A sensitivity analysis studies the impact of specified variations in key factors on the initially-calculated NPV. The initial point for a sensitivity analy

Stakeholder vs shareholder approach, QUESTION 1 (a) What do you underst...

QUESTION 1 (a) What do you understand by the term Civil Society Organisations? (b) Distinguish between sectional and promotional groups. Give examples to support your answer

Explain savings and loan associations, Savings and loan associations Hi...

Savings and loan associations Historically savings along with loan associations (S&Ls) and thrift institutions have concentrated mostly on residential mortgages by acquiring fu

What is cash flow criteria, Q. What is Cash Flow Criteria? Cash Flow Cr...

Q. What is Cash Flow Criteria? Cash Flow Criteria: - Cash flow criteria are on the basis of cash flows rather than accounting profit. Cash flow methods are separated into two s

Corporate governance features, Corporate Governance features Corporat...

Corporate Governance features Corporate compliance: The BOD should make sure that corporation obeys with all related laws, governance practices, regulations, accounting an

Graphic presentation of net operating income approach, Q. Graphic Presentat...

Q. Graphic Presentation of Net Operating Income Approach ? Graphic Presentation of NOI (Net Operating Income) Approach: - NOI (Net Operating Income) approach is explained graph

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd