Protecting Minority Investors
This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights,
governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed
in May 2019.
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See the methodology for more information
What the indicators measure
: Disclosure, review, and
approval requirements for related-party transactions
•
Extent of disclosure index (0–10)
: Ability of minority
shareholders to sue and hold interested
directors liable for
prejudicial related-party transactions; Available legal
remedies (damages, disgorgement of profits, disqualification
from managerial position(s)
for one year or more, rescission of
the transaction)
•
Extent of director liability index (0–10)
: Access to internal
corporate documents; Evidence
obtainable during trial and
allocation of legal expenses
•
Ease of shareholder suits index (0–10)
Sum of
the extent of disclosure, extent of director liability and ease of
shareholder
suits indices
•
Extent of conflict of interest regulation index (0-30):
: Shareholders’ rights
and role in major corporate decisions
•
Extent of shareholder rights index (0-6)
: Governance
safeguards protecting shareholders
from undue board control
and entrenchment
•
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