Agency Costs in Controlled Companies  

Oleh:

Rachagan, Shanthy

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Singapore Journal of Legal Studies (Dec. 2006), page 264-284.
Topik: agency costs; agency costs; controlled companies

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: SS46 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

Agency costs have become one of the significant issues in the protection of minority shareholders particularly in controlled companies. The obvious advantage of a controlling shareholder lies in the fact that the controlling shareholder's interest is aligned to that of the non-controlling shareholder. However the concern with controlled companies is that there may be "private benefits of control" which is usually taken to mean as including everything controlling shareholders are able to get out of their position without minority shareholders receiving a proportionate share. There is persistent danger that controlling shareholders will transfer company's resources to themselves. This article will deliberate the reasons why we need to extend protection to minority shareholders. The article will then examine the nature and extent of the agency problems faced by minority shareholders in controlled public companies in Malaysia. The article will achieve this objective by discussing the various strategies available to overcome agency costs arising from the relationship of controlling shareholders and minority shareholders. The article will also discuss the application of the strategies to overcome agency problems in Malaysia. The article will conclude that to entrench a culture of sound corporate governance in Malaysia requires more than just changes to laws and regulations, it requires the introduction of a self - enforcing model.

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