Definitions from the Web
Director-Stockholder Relation
Definition: The relationship between directors and stockholders refers to the interaction and mutual responsibilities that exist between the individuals serving as directors of a company and the shareholders who own a portion of the company's stock.
Senses:
- Corporate Governance: The director-stockholder relation plays a crucial role in ensuring responsible corporate governance and safeguarding the interests of the company's shareholders.
- Decision-making: Directors, as representatives of the stockholders, participate in key decision-making processes, such as the appointment of executives, setting strategic goals, and approving significant financial transactions.
- Accountability: Directors have a fiduciary duty towards stockholders, requiring them to act in the best interests of the shareholders and be accountable for their actions.
Sample Sentences:
- The director-stockholder relation is vital for maintaining transparency and accountability within a company.
- The director-stockholder relation can be enhanced through regular dialogues and open communication channels.
- Good governance practices ensure a strong director-stockholder relation, fostering trust among shareholders.
- Directors must consistently evaluate potential conflicts of interest to maintain the integrity of the director-stockholder relation.
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