The Business Law Essay

Majority shareholders are those who possess more than 50% of the corporation’s outstanding shares, whereas minority shareholders hold less than this percentage. (Fredmond., 2000). Each shareholder has the following privileges: the right to vote on significant matters, ownership of a portion of the company, the ability to trade or transfer ownership on the market, the right to dividend payments when they are declared, the ability to bring legal actions on the company’s behalf for wrongdoings, and the ability to examine the books and records of the company. Shareholders have their main task of passing a resolution through voting the Majority shareholder refers to an entity or person who owns more than 50% of the outstanding company shares while the minority shareholder owns less than 50% of the corporation outstanding shares (Fredmond., 2000). Each shareholder has the following rights: the power to vote on major issues, ownership of a portion of the company, right to trade or transfer ownership on the trade, entitled to dividend when they are declared, right to sue on behalf of the company for wrong acts, inspecting the company records and books. Shareholders have their main task of passing a resolution through voting the

Majority shareholder refers to an entity or person who owns more than 50% of the outstanding company shares while the minority shareholder owns less than 50% of the corporation outstanding shares (Fredmond., 2000). Each shareholder has the following rights: the power to vote on major issues, ownership of a portion of the company, right to trade or transfer ownership on the trade, entitled to dividend when they are declared, right to sue on behalf of the company for wrong acts, inspecting the company records and books. Shareholders have their main task of passing a resolution through voting the shareholder of their capacity (Hauser et al., 2003).

Shareholders are the owners of the company.

Shareholders have the role of engagement in the new emerging economy. They should use different forms such as emailing or face to face meeting especially when they understand different market peculiarities. They have a voting role to ensure strong and good governance (Millon., 2013). Social shift responsibility aims to maintain an eye on the negative long-run value effect and competitiveness, the short-term overlooked consequence of the corporate social responsibility impediments.

Stocks Based On Ownership Rights.

They are classified into two.

Common stock. This is the common stock that people talk about when they think of stock. They represent the ownership of a company and the portion of the company profit (dividend) an investor can claim. Common stock is known the highest risks and probably yields higher returns (Baker et al., 2015).

Preferred stock.

It shows the degree of ownership of the corporation but does not always have the same voting right. Investors have a guarantee of fixed dividend (Baker et al., 2015). When the company becomes insolvent, the shareholders holding preferred stock are paid first before common shareholders.

Specification on Bases of the Company.

Blue chip stocks. These refer to the stock of biggest companies. The returns of the company are large and therefore have steady prices of stock.

Income stocks. These refer to the stock of a big stable company with the tendency of paying huge dividends. The stock gives the retirees a fixed income than when investing in bonds.

Based on the size.

These are based on the market capitalization. We have the mega capitalization stock, large cap stock, mid-cap stock, small cap stock, micro-cap stock and nan- cap stock.

Hallmarks.

Economic reality.

Stock should be viewed in a perspective of substance rather than its form

Security. This is the main aim of investing to get a certain amount of profit from others managerial efforts.

State Financial subsidies are attributed to low rent.

Definition of Dividend

The dividend is the portion of money a company gets as the net profit that is paid to the shareholders as decided by the board of directors. Dividends are taxable depending on whether the dividends are non-disqualified or qualified (Hauser et al., 2003). A dividend should be taxed according to certain tax bracket. This is to ensure that there is some limit when it comes to stock investment and also limits companies to make a huge profit and go tax-free. Tax is a form of government income and development cannot be realized if we lack a source of revenue. When taxing brackets are applied, then modern business cannot be discouraged from investing.

It’s fair. The 10% should be liable to the other shareholders. This will limit the different scenarios of the insider whereby a person gets probable cause that the company is sinking then he or she trades his stock to avoid going down with the company. Free markets have the problem of unpredicted fluctuations in the stock exchange. The free market should only be encouraged under minimal government interference.

Munter, J. E. (1966). Section 16 (b) of the Securities Exchange Act of 1934 An Alternative to Burning Down the Barn to kill the Rats. Cornell Law Review, 52(1), 69-101.

By trading on the company stock, Martha steward violated the Securities Exchange Act of 1934 (Julia., 2012). She was Waksal’s friend who made the situation look like she was given information that was not widely known by any other shareholder. lt came to be discovered that regular investors were not aware. She knew Waksal was selling the stock but with no reason and this complicated her case. She was charged over lies she told to cover the trade.

Joan MacLeod Hemingway (Maryland law review volume 65)

The corporate merger is the when one corporation gains the liabilities and the assets of another corporation merging up to become defunct. Merging has the effect of increasing the company size and providing a good competitive environment.

Corporation dissolution is the legal death or formal disbandment of a corporation that may be made possible by an act of a legislature, approval by shareholders with director’s recommendation (Malloy., 2011), Shareholders unanimous action, elapse of the time set as into the corporate certificate. Dissolution helps the company from excessive debts that may exceed the company assets, and this reduces the liability of the shareholders.

Review your existing employment

Wait and avoid gossiping and speculation.

Boost your value in the company.

The employers do not necessary go through job merge especially if the merging was contributed by the poor work output on the side of workers.

Employees withhold state and federal income taxes from their payment which is paid as salary and is subjected to overtime

Independent contractors do not have state income tax as well as federal withholding (Murray. 2017). Independent contractor pays his or her tax. The importance of the difference is that an employee is hired to perform the specific task of the company whereas an independent contractor runs his own business but working for another business (Murray., 2017).

Vicarious Liability.

It is the situation in which a person is held responsible for omissions or actions of someone else (Giliker., 2010). It is applicable when the wrongful act occurs within the agency or employment scope. It is valid if a person lacks roof to show that the action could not be prevented shareholder of their capacity (Hauser et al., 2003). Shareholders are the owners of the company.

Shareholders have the role of engagement in the new emerging economy. They should use different forms such as emailing or face to face meeting especially when they understand different market peculiarities. They have a voting role to ensure strong and good governance (Millon., 2013). Social shift responsibility aims to maintain an eye on the negative long-run value effect and competitiveness, the short-term overlooked consequence of the corporate social responsibility impediments.

References

By Julia Leite. (2012) covering Business-Columbia Journalism School ’12

http://coveringbusiness.com/2012/05/15/what-martha-stewart-did-wrong/

David Millon, Shareholder Social Responsibility, 36 SEATTLE U. L. REV. 911 (2013)

Fredmond. O. (2000). The role of stakeholders

Giliker, P. (2010). Vicarious liability in tort: a comparative perspective (Vol. 69). Cambridge University Press.

Hauser, S., & Lauterbach, B. (2003). The value of voting rights to majority shareholders: Evidence from dual-class stock unifications. Review of Financial Studies, 17(4), 1167-1184.

Hemingway, J. M. (2011). The Last Male Bastion: In Search of a Trojan Horse. U. Dayton L. Rev., 37, 77.

Malloy, M. P. (2011). Banking and Financial Services Law.

Murray.J.(2017). The balance- difference between independent contractor and employee

https://www.thebalance.com/independent-contractor-or-employee-what-s-the-difference-397912

Smith, L. (2005). How to Survive a Corporate Merger? U.S. News & World Report. 139(6). EE2-EE7