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social science subjects > business and management > business ethics > finance ethics > shareholder model of corporate governance

Preferred term

shareholder model of corporate governance  

Definition

  • In the familiar Anglo-American model of corporate governance, shareholders have two important rights: the right to ultimate control of a corporation and a right to all its profits. In addition, shareholders are the exclusive beneficiary of the fiduciary duty of management, which is to say that managers have a fiduciary duty to operate a corporation solely in the interest of shareholders. [Source: Encyclopedia of Business Ethics and Society; Shareholder Model of Corporate Governance]

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https://concepts.sagepub.com/social-science/concept/shareholder_model_of_corporate_governance

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