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Hi sir, if let’s say a company used to be a family owned company and it recently floated on a stock exchange. However, the family members are always dominating discussions in the company and discouraging the views from the company’s external stakeholders.
What is the downside of this ?
The downside is that in a listed company the family is not the only set of shareholders who matter. The company has listed, raised money from the public, so the interests of all shareholders have to be considered at board meetings.
You have been asking questions about governance for ages. I think you need to move on to other areas of the syllabus.
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