The interests of managers and owners of a Company conflict.

Managers in an agency relationship are to require to always act in the best interests of the
owners.
However, it is impossible to arrange the ‘perfect contract’ because decisions by the
managers (agents) affect their own personal welfare as well as the interests of the owners. This
gives raise to conflict of interests
Required
Identify and briefly discuss the different ways in which the interests of managers and owners of a
Company conflict.

 

 

 

Sample Solution

The interests of managers and owners of a Company conflict

The agency view of the corporation posits that the decision rights (control) of the corporation are entrusted to the manager to act in shareholders` (and other parties`) interests. Partly as a result of this separation, corporate governance mechanisms include a system of controls intended to help align managers` incentives with those of shareholders and other stakeholders. The principal-agent problem or agency dilemma concerns the difficulties in motivating one party (the agent) to act on behalf of another (the principal). Major conflicts of interest could include, but are not restricted to, salaries and perks, misappropriation of company assets, self-dealing, appropriating corporate opportunities, insider trading, and neglecting board work.

This document provides an overview of the operational requirements in terms of fire safety. It details many perceived fire safety hazards across the venue through its various phases including build up; the event and de-rig which focuses on and is relevant to all visitors to the site including staff, contractors and the general public. Discussion: This document provides the venue, event manager and all other key stakeholders with a tool to analyse potential hazards to personnel from a fire safety point of view. It enables the level of perceived risk to be calculated alongside the likelihood of occurrence that can then be used to ascertain overall risk. This used effectively allows the event manager to formulate methods to reduce or remove the risk of injury from a potential hazard. Once a reduction method is in place the risk factor is recalculated providing an amended indicator. This action allows demonstration of ongoing work to mitigate risk to personal on site that is often focused upon by key stakeholders. This tool is highly useful in terms of providing a safe environment and complying with current relevant legislation. Live 8 Event Safety Plan Description: This document provides the information and documentation pertaining to the entire event, it includes detailed guidance and procedure for all elements of the event including the build and de-rig phases. The document explains in detail the fundamental elements required for the event to operate safely, successfully and in line with legislation. Discussion:

This question has been answered.

Get Answer
WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, Welcome to Compliant Papers.