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The team studied 24 ways in which a company may restrict shareholder rights and combined them into an overall index.
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Why would companies that restrict shareholder rights be such poor performers?
Recently, some advocates of socially responsible investing have suggested that companies be avoided if they severely restrict shareholder rights.
Anti-takeover provisions (ATPs) restrict shareholders' rights by shielding managers from takeovers and shareholder activism.
Others may restrict individual freedom more severely.
They may restrict blood and air flow.
Contracts may also restrict their ability to play overseas or for other teams, lawyers said.
Source: Apple may not restrict free iPhone apps [Electronista].
Parents may severely restrict your creativity.
Management may like restricted stock programs because shareholders are more likely to swallow them.
"Restricting a shareholder's right to sell may cause the shareholder to fall behind in maintenance payments, which would adversely affect the whole co-op," he said.
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