Introduction
Slocker governance is a term used to describe the system of corporate governance designed to protect small shareholders from abuses of power by larger investors. It is a combination of shareholder proposals and stock limiters that can be utilized by companies to provide protection from corporate raiders, hostile takeovers and insider trading.
Background
The first form of Slocker governance was developed in the early 1980s in response to the efforts of corporate takeovers. This form of governance sought to protect small shareholders from large investors who acted as predators, or who may be able to exploit weaknesses in the companys corporate governance structure. The concept of Slocker governance has since evolved over the years and is now widely accepted as an effective way to protect minority shareholders from corporate predators.
Shareholder Proposals
Shareholder propositions are a key part of Slocker governance. These propositions are permitted under the law and are typically used to facilitate shareholder voting rights. Common shareholder proposals include: offering dividend rights, creating a shareholders forum and proposing the removal of directors from the board. Propositions may also be used to propose corporate policy changes, to reduce executive pay, or to call for the adoption of responsible corporate governance practices. Generally, once a shareholder has made a proposal, the company must allow its shareholders to vote on the proposal.
Stock Limiters
Another important element of Slocker governance is stock limiters. Stock limiters are limits placed on the amount of shares that can be held by a single investor in a given company. This limit is meant to constrain the influence of larger investors, thus protecting small shareholders. The size of these limits depend on a number of factors including the companys size and its shareholders individual financial resources. It is important to note that these limits can only be activated when approved in advance by a companys board of directors.
Shareholder Rights
Shareholder rights are another important aspect of Slocker governance. These rights include the right to approve or reject shareholder proposals, the right to vote on the election or removal of directors, the right to monitor the performance of management and the right to access corporate information. It is important for investors to understand their shareholder rights and be aware of the restrictions placed upon them by Slocker governance.
Conclusion
Slocker governance is an important form of corporate governance designed to protect small shareholders from abuses of power by larger investors. It is a combination of shareholder proposals and stock limiters which are designed to protect minority investors from corporate predators, hostile takeovers and insider trading. It is important for investors to understand their rights under Slocker governance and to be aware of the restrictions placed upon them by the system. Ultimately, Slocker governance helps ensure that the interests of all shareholders, both large and small, are taken into account when making decisions within the company.
