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It would be much wiser to play to capitalism's strength its flexibility and to encourage shareholders themselves, the ostensible owners of companies, to sort the problem out.
This introduced several measures meant to make it harder for trial lawyers to encourage shareholders to sue companies, their directors and their officers for fraud.
We suspect that [Johnson's] strong position in both autocatalysts and platinum group metals would encourage shareholders to demand that be recognised in any potential offer.
Lowering the limit to 15 minutes would mean a greater chance of suffering financial loss, so would encourage shareholders to push for better punctuality.
The attempt to encourage shareholders to monitor managers more actively raises the issue of what sort of representation is available for shareholders.
Rather than saying you must do this, the government can encourage shareholders". "It would be preferable to avoid a situation where excessive rewards are paid for failure.
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Approaches that encourage shareholder input but not confrontation and conflict are more likely to succeed in improving boards.
If the whole point of shareholder proxy access is to encourage shareholder engagement, the introduction of an element that chills shareholder collective action seems counterproductive.
If JPMorgan admits to wrongdoing related to the traders' improper bookkeeping, among other problems, the move could encourage shareholder lawsuits against the bank.
While the government's punish-the-shareholders plan should encourage shareholder prudence, it might also mean that the mere whiff of crisis sends equity holders to the exits, thereby producing actual crisis.
This time around, lawmakers say they want to do two things: encourage shareholder participation in how pay packages are structured and awarded at their companies and enlist regulators to reduce risky compensation incentives.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com