2007-08-14 22:34:09 · 4 answers · asked by LINGI 1 in Business & Finance ➔ Investing
In Private companies, especially early- to intermediate-stage, they play a major role. All major investment, strategy, hiring/firing and business line decisions require at least ratification by shareholders, depending on the text of the shareholders' agreement.
Once public, shareholders typically play a more back-seat role, unless that shareholder owns a large stake or is taking a stake to effect changes in management of the company in order to seek unusual returns. Hedge funds frequently do this.
2007-08-15 02:00:56 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Only if they have nominating power for appointing the board of directors. Otherwise nothing. Because its the board that makes decisions. But again it depends in the size of the company and whether its listed or not. The influence of shareholders is more pronounced in unlisted companies.
2007-08-15 05:46:42 · answer #2 · answered by mq2 2 · 0⤊ 0⤋
Is the business a small one or large one? The answer is very different based on that question.
2007-08-15 07:48:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋
They provide capital(cash) by purchasing shares of stock (ownership). They usually don't get involved in the day to day running of the business.
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2007-08-15 05:43:23 · answer #4 · answered by Wise@ss 4 · 0⤊ 0⤋