Oditor, No. 10/2015

HISTORICAL ASPECTS OF DEVELOPMENT OF THE CAPITAL MARKET AND CORPORATE GOVERNANCE
prof. dr Ilija Galjak[25], mr Čedomir Bojković[26]

UDC: 336.76
005.21:334.72.021

Abstract

Corporate governance describes the agency problem resulting separation of ownership from control in modemoj corporation and represents a major expense for shareholders. The agency problem regulating legal protection of small shareholders, establishing the functions of the Supervisory Board of Directors as the body that controls the managers and active market for corporate control (hostile takeover). These mechanisms regulating the regulation of securities (at the federal level), corporate law (at state level), and corporate statutes, Contracting regulations and other rules (firm-level). These regulations, laws and regulations actually defining a distribution of power between shareholders and managers. Such techniques of takeover defense may be beneficial to shareholders, if managers are used to strengthen the bargaining power and increase the selling price of the company. However, if managers use to preserve their own positions and the achievement of personal interests, the provisions do not contribute to the realization of the interests of shareholders.

Key words: Corporate governance, equity, agency problem, shareholders, managers.

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[25]Ilija Galjak Ph.D., Professor, School of Economics and Management Studies, Karađorđeva no. 52, Kragujevac, Serbia.
[26]Čedomir Bojković M.A., Belgrade Business School, Higher Education Institution for Applied Studies, Kraljice Marije no. 73, Belgrade, Serbia.