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The dominant shareholder in major Chinese resources companies is the Chinese government.
Moreover, because of these transactions, investors have lost influence over their company to a dominant shareholder.
It is argued that an asymmetrical self-regulation mechanism may develop in the case of control by a dominant shareholder.
But Thomas Gauly, a spokesman for the Quandt family of Germany, BMW's dominant shareholder, dismissed the speculation.
Murdoch at one time was the dominant shareholder at London Weekend Television; he was forced out by the regulator.
This arrangement can work at companies during leadership transitions and when there are dominant shareholder blocs, like family control.
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Antigua, Barbados and St Vincent are dominant shareholders in a smaller rival, LIAT.
The dominant shareholders, descendants of the founder, Thierry Hermès, have strongly resisted Mr. Arnault's approach.
The various Cadbury, Greenbury, Higgs and Hampel reports and codes were designed to protect investors from greedy directors and dominant shareholders.
However, today the Bouygues brothers rank as the dominant shareholders of a firm with a stockmarket value of around €15 billion ($19.7 billion).
On the flip side, some companies have very dominant shareholders, making it difficult for any potential activist investor to start a takeover battle.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com