You have been hired as corporate governance advisor by the Palestinian Capital Market Authority and have been asked to indicate whether the following actions Increase Management Power, Increase Stockholder Power, or No Effect and give a very short rationale for each answer. 1. PADICO decides to expand its board of directors from 10 members to 20 members and allows the CEO to select the new directors.

2. The Palestinian Hedge Fund manages to get three of its nominees elected to the board of directors at the expense of management nominees.

3. Jawwal, a closely held firm (insiders hold 35% of the 100,000 shares) issues 800,000 new nonvoting shares to the public to raise capital.

4. The Palestinian Legislative Council passes a law prohibiting hostile takeovers.

5. Three inside directors on Jerusalem Pharmaceuticals board are replaced with outside directors, chosen by the CEO.

6. The holdings of institutional investors in UNIPAL increases at the expense of small individual investors.

7. Arab Bank, a lender to PALTEL is given a large equity position in the firm to compensate for missed interest payments

8. The CEO of another firm in the same industry is replaced because of poor earnings.

9. Leaders, a Palestinian Private Equity Fund with a history of activism, buys 3% of PADICOs outstanding stock.

10. Oreedos corporate charter is changed so that only one-fourth of the board of directors gets replaced each year, instead of the entire board.

11. NAPCOs stock, which was unfollowed by analysts, is added to the list of followed companies at six investment banks.

12. Jawwals CEO exercises his right to convert 10 million options he was granted as part of compensation packages in prior years.

13. Al Wataniya requires stockholders to own stock for not less than a year before they can vote at the annual general meetings.

14. PALTEL requires hostile acquirers to pay stockholders a 20% premium over the current stock price.

15. Forbidding foreign investors to own stock in Palestinian companies.