Shareholders Redefine Corporate Control Rights Through Contracts, Separating Voting and Control.
The article explores how shareholders in corporations can change their control rights through contracts, rather than just through voting power. The researchers found that 15% of recently public companies have shareholder agreements that redefine control rights. These agreements allow shareholders to limit share sales, waive loyalty duties, and negotiate voting rights for directors and other control aspects. This separation of voting and control raises important questions about corporate law and its implications for companies.