Tag Archives: shareholder

Shareholder rights and bank loan contract terms

By | October 20, 2021

Shareholders and debtholders of a firm often have conflicting objectives. The root of  shareholder-debtholder conflict is the different nature of cash-flow claims they are each entitled to. The actual power possessed by shareholders depends upon the specific rules of corporate governance. For example, when governance discipline reserves more power for shareholders, the firm’s owners can more easily replace the board… Read More »