The Company 's Ownership Structured

Bombardier is a Canadian based public company operating in the sector of manufacturing planes and train in several countries. It was founded by Joseph –Armand Bombardier in 1942. They key people involved in the management are Pierre Beaudoin, Alain Bellemare and Lutz Bertling who are working as Chairman, CEO and COO of the company respectively. Over the years, this company has utilized its resources very well and followed a fantastic strategy of expansion. Most of the expansion was made using inorganic strategy of expansion by acquiring various companies already running in the industry which help Bombardier in quick rapid growth. This is quite clear as it has moved well in the value system from making of snowmobiles to planes

The scope of this paper is to analyze the kind of agency problems that emerges between The Hershey Company and their stakeholders and shareholders. To answer this, a review of the company`s board structure and ownership structure was made. Thereafter two specific situations that has occurred in recent times was used as case examples to enlighten the agency problems suggested to emerge by the corporate structure.

Common stockholders are the basic owners of a corporation, but few stockholders of large corporations take an active role in management. Instead, they elect the corporation’s board of directors to represent their interests. Board members seldom get involved in the day-to-day management of the company. They establish the basic mission and goals of the corporation and appoint

Managers and shareholders are the utmost contributors of these conflicts, hence affecting the entire structural organization of a company, its managerial system and eventually to the company's societal responsibility. A corporation is well organized with stipulated division of responsibilities among the arms of the organizational structure, shareholders, directors, managers and corporate officers. However, conflicts between managers in most firms and shareholders have brought about agency problems. Shares and their trade have seen many companies rise to big investments. Shareholders keep the companies running

Based on the rules of organizational structure, there are a number of owners that is organizations that owns the stocks of the company as well as make decisions hiring directors. Moreover, shareholders can sell the stocks in case they need more money or when they are disappointed from the company. However, there are a majority of companies where the job as purchasing the stocks of the company is almost impossible as Sukhoi aircraft holding Company. Due to the fact that Sukhoi is Russian`s aircraft manufacturer Company, it is the publicly held company. Therefore, owners of the company are organizations and corporations. According to 31 December 2011 year the Russian Federation

Pierre Lortie = newly appointed President & Chief Operating Officer of Bombardier Transportation (BT), headquartered in St. Bruno, Quebec

Shaw communications equity structure is comprised of series A shares and series B shares. Series B shares trade on the Toronto Stock Exchange, and 50% of these shares are owned by the top 25 shareholders. 40% of the shares are owned by financial institutions as part of their investment portfolios. Only 12% of the shares are owned by insiders, i.e. Shaw family and/or executives. Since these shares don’t have voting options, their ownership is mainly for capital gain and dividend purposes. On the other hand, series A shares have an embedded voting option, and 78% of the shares are owned by the Shaw family within the Shaw Family Living Trust (SFLT1). Therefore, Shaw family has total control of the company’s decisions. This increases the overall risk to the firm as ordinary shareholders have no say over the operations of the firm. The main implication is agency risk, as no one can exercise a final vote but the Shaw family. Company decisions could be biased towards Shaw family’s interest, and not in the best interest of other shareholders. Bad signals could make investors to withdraw their investments from the company, and Shaw’s market capitalization would plummet. The dual class structure and the current ownership structure increases the operating risk, and hence the required rate of return for equity. As a consequence the WACC of the firm is deemed to increase.

Bombardier Inc., a diversified manufacturing and service company, is a world leading manufacturer of business jets, regional aircraft, rail transportation equipment. It is also a provider of financial services and asset management. The Corporation employs 79,000 people in 24 countries in the Americas, Europe and AsiaPacific

Our textbook defines an agency problem as a “conflict between the goals of a firm’s owners and its managers” (Megginson & Smart, 2009). It then defines agency costs as dollar costs that arise because of this conflict. In the corporate structure, stockholders are the owners of the firm, and they elect a board of directors to oversee the firm and help protect their investment. The board then hires the right corporate managers to run the firm with the goal of maximizing the wealth of the

Bombardier Aerospace is a train and aircraft manufacture based out of Canada. It is considered the one of the largest aircraft manufacturer in the world after Boeing and Airbus (Andrews, 2015). Bombardier Aerospace performs its operations in two distinct sectors: rail transportation via Bombardier Transportation and aerospace via Bombardier Aerospace. In regards to Bombardier Aerospace, it includes aircraft (commercial and cargo), jets, turboprops, and amphibious aircraft. In an article recently published in the Wall Street Journal, McKinnon (2015) points out that “National Bank is guiding for 20 commercial plane deliveries in the quarter, up from 13 a year earlier…[and] Revenue, according to analysts, is expected to climb around 6% to $4.62 billion” (McKinnon, 2015, para. 3). Airline

The second class, 'Stock Shares Inheritance Group. ' They will not participate in management, but they are already major shareholders.

Agency relationship refers to a consensual relationship between two parties, where one person or entity authorizes the other to act on his, her or its behalf, and they exist as mutual agreements between individuals, small firms and large organizations. Managerial opportunism is when managers use employer information for personal gain, this creates a conflict of interest, with self-serving managers making decisions that benefit them rather than the company owners or shareholders. Corporate governance problem deals with

Economic science teaches us that due to their subjective needs, individuals have subjective preferences, and hence different interest. Occasionally different subjective interests give rise to conflicts of interest between contracting partners. These conflicts of interest may result in turn, in one or both parties undertaking actions that may be against the interest of the other contracting partner. The primary reason for the divergence of objectives between managers and shareholders has been attributed to separation of ownership (shareholders) and control (management) in corporations. As a consequence, agency problems

“A proper balance of the rights of majority and minority shareholders is essential for the smooth functioning of the company.”- Explain & Illustrate? 1. Introduction:

As explained by Schelker (2013), the agency problem between the owners and the management of a firm is at the heart of the corporate governance literature. Hence, there is a need for a