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"No, the governing body of directors is always democratically elected, even with a private company. Under all forms of western corporation law, each share gets one vote in the election of the directors and chairman/president." :Formally you are right. But effectively the shareholder may not have enough knowledge to sensibly take part in the elections - the director almost always has much larger knowledge than shareholder about company- so it may be difficult for him/her to check whether the management of his firm acts in the interests of owners or in its own interest. (it is the problem which in economics is called 'the principal-agent problem', see for example David Begg et al "Microeconomics" chapter 4, or the book of John Kenneth Galbraith from 1973 "Economics and the Public Purpose"). Kazik |
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