As owners of the company, shareholders have a unique relationship to the board and the management. They must rely on the board of directors, whom they elect for managing the affairs of the company, using their right to vote at shareholders’ meetings. To protect their long-term economic interests, shareholders have a responsibility to monitor the conduct of the board of directors and exercise their voting rights by casting thoughtful and informed votes that safe-guard their financial and other interests.
Although the effective exercise of the voting rights is the key mechanism by which the shareholders can play a role in the governance of the corporation, It is also important that the shareholders always keep a watchful eye on the affairs of the company and ensure that the management is acting and performing its duties in compliance with the provisions of law. Shareholders should promote more effective corporate governance in the company and ensure that the corporate governance practices meet high standards of accountability, transparency and fiduciary responsibility. Shareholders must ensure that the affairs of the company are being conducted by the management, in the best interests of the shareholders.