Ownership versus control : fault lines in director-shareholders relationship - special reference to Malaysian family business

Abd Ghadas, Zuhairah Ariff and Hassan, Halyani (2011) Ownership versus control : fault lines in director-shareholders relationship - special reference to Malaysian family business. UUM Journal of Legal Studies, 2. pp. 1-16. ISSN 2229-984 X E-ISSN 0127-9483

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Abstract

he structure of family business is unique compared to the non-family business as it combines three elements, namely, family relationships, composition of owners and management structure under the name of the business. This distinctive attribute often give rise to governance issues. Under the conventional concept of corporate governance, directors should act in the best interest of the shareholders. In doing so, the directors’ action is governed by certain rules which specify their duties and these rules are relevant to the shareholders with respect to their rights. Although there are laws which govern the relationship between the directors and shareholders, in certain circumstances there are some latent problems. These hidden problems can be identifi ed as the fault lines in the relationship between directors and shareholders. This article discusses the issues pertaining to fault lines which may arise in a family business due to the complex and overlapping structure between directors and shareholders in a family business. Research methodology applied in this research is mainly doctrinal analysis.

Item Type:	Article (Journal)
Additional Information:	1474/66555
Uncontrolled Keywords:	Family Business, Directors, Shareholders
Subjects:	K Law > KPG Malaysia
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Ahmad Ibrahim Kulliyyah of Laws Ahmad Ibrahim Kulliyyah of Laws > Department of Civil Law
Depositing User:	Asst. Prof. Dr. Halyani Hassan
Date Deposited:	05 Apr 2019 09:21
Last Modified:	12 Jul 2019 11:41
URI:	http://irep.iium.edu.my/id/eprint/66555

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