Role of the Shareholder in Construction of an Institutional Order in the Company

Abstract

Setting up an institutional body will allow to balance interests between interested participants in the company (first of all between management and shareholders). Introduction of an institutional order is reached by means of an establishment of the accurate game rules fixed in internal documents (the charter, corporate positions). The author tries to design institutional model of behavior of participants with their accurate description competencies and responsibility which will allow to protect from destruction of «shareholder value».

Keywords

• institutional order
• corporate governance
• management
• shareholder
• interest
• fiduciary duties
• discretion