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AGENCY RELATIONSHIP Name Professor Class Course Date An agency relationship is a fiduciary and consensual relationship between the principal and agents in the business. An agent is that person who acts on behalf of another legal person or a group of legal persons. The principal is the one who has the legal authority over an agent such that he she or it can authorize the agent to act on hi her or its behalf. By a legal person it can mean a company (legal person) or a physical person. Agency theory has been found to be crucial in solving problems that may arise through the agency relationship. For example the company executives are agents of company shareholders and thus should act taking into account all business interests of the shareholders without negligence and breach of agency duty. Challenges arising from this kind of relationship may result in such cases offer restricted stock to company executives to remedy this challenge. Block ownership Block ownership is a form of ownership is a form of stock ownership whereby outside investors own a significant chunk of the company’s shares such that he or she is able to influence voting rights. In so doing such a block holder can influence the operations of the company thus acting as an oversight over the company executives. This results into better corporate governance. The effect of Regulatory Agencies and Legal Systems on Corporate Governance Regulatory or oversight agencies tend to improve corporate governance. This is particularly so because companies have to act within the regulations of these agencies failure to which may lead to legal proceedings against the company executives. The same case applies to legal systems that have become focused on corporate governance in a bid to protect consumers the community and investors in general. [...]
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it says to use the textbook but I looked what is on the file I sent is what is in the textbook so no need for that just follow the instructions please
Subject Area: Mathematics
Document Type: Dissertation Proposal
