Question 3

Sometimes Minority Shareholders and Non-Shareholder Constituencies need protection in Corporate Law. Describe the mechanism used to protect these groups.

1. Even though Mr. G owns 45% of shares, he only gets 20% of voting rights.
2. An environmental NGO advocate is added to the board of a coal company.
3. Company D requires half of the board members to be employee representatives.
4. Company M allows employees to buy Company M stock at a 5% discount.
5. Country Ss government can block Company Is merger plans through its special ownership rights.