Command and Control
Ever since the joint stock company, the predecessor of the modern corporation, was invented shareholders have engaged in a love-hate relationship with the managers of their firms. At the heart of the battle is a matter of great importance for all investors – who owns and controls the companies they place their capital in?
The balance between shareholders and managers has see-sawed back and forth, but in recent years has swung down firmly in favour of the latter. Now, though, shareholders are fighting back. Shareholders are revolting, and not before time. Unfortunately, they need to be very careful what they wish for.
