Mallin: Corporate Governance 2e 
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PowerPoint presentationsMallin: Corporate Governance 2e
Chapter 6
Voting
Page 82 of the book
In December 2007, the OECD published a paper on the ‘Lack of Proportionality Between Ownership and Control: Overview and Issues for Discussion’. The paper states that ‘proportionality between corporate ownership and control implies that any shareholder owns the same fraction of cash flow rights and voting rights’. In some countries there is a departure from this principle of proportionality and this may cause concern. The paper highlights that the cost of regulating proportionality would be significant and that a preferred approach is to strengthen corporate governance frameworks and, where necessary, target specific problems in some countries with regulation. The full document is available at: www.oecd.org/dataoecd/21/32/40038351.pdf
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