Greater choice for stockholders
Article Abstract:
A proposal aimed at expanding the rights of stockholders has been tendered to the US Congress. Under the proffered 'Capital Reinvestment Act,' taxable income incurred through the reinvestment of dividends in the company's dividend reinvestment program (DRP) is eliminated. This would permit shareholders to decide whether to reinvest their dividends without incurring any tax duty or to take the money received from the payment of cash dividend and pay taxes. Shares gained from the reinvestment is taxed on capital gains until the time that they are sold. As a consequence, capital can be more easily channeled into any investment that holds significant potential. Furthermore, corporations that hold favorable returns and large capital needs would most likely be offered with reinvestments of earnings by their stockholders, awarding management with a vote of confidence.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Outside directors: smaller companies
Article Abstract:
Outside directors can play a valuable role in the governance of small or private companies. These outside directors' most valuable contributions are the provision of business expertise in specific areas and the improvement of a company's credibility with third parties. Most outside directors are selected through the informal network of business contacts of board members. These outside directors are typically major stockholders or their representatives, high-level managers from larger firms, professionals who serve within the company, and outsiders with special skills.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Merger strategies and capital market risk. Stockholder reactions to CEO changes in large corporations. Diversification, systematic risk, and shareholder return: a capital market extension of Rumelt's 1974 study
- Abstracts: Ethics for academics. Bartering: an ancient concept revived. 'PC: what did we earn last year?' (using natural language processing) (includes related articles on General Electric's natural language system and two examples of how natural language interfaces help)
- Abstracts: Researchers isolate bacteria protein that may help miniaturize computers. BP unit enters hard-to-crack market for ceramic casings on electronic chips
- Abstracts: Scientists shoot for liquid-crystal display TV screens. European government offices may hire computer companies for in-house work
- Abstracts: LDI expects 1st-half results to slide as clients postpone leasing computers. Milacron, last big heavy robots maker in U.S., to sell line to Asea Brown unit