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Research Article |

Corporate Governance & Rights and Privileges of Minority Shareholders of Family-Owned Firms: Evidence from the Emerging Economy

Corporate Governance has recently become an important issue in Bangladesh. The principal characteristics of effective corporate governance are protection of rights and privileges of minority shareholders and transparency of companies. The Companies Act of 1994, which was passed with the protection of minority shareholders as one of its key objectives, has fallen short of providing minorities with the security and remedy they were expecting against oppression. The main objective of the study is to evaluate the rights and privileges of minority shareholders in the family-owned firms on the perception of three major stakeholders of the sample companies. For this purpose, the study has developed a questionnaire based on recent literature survey and gathered the opinions of the executive/non-executive directors, Independent directors and shareholders of sample companies under the framework of 5 point likert scale. The gathered primary data have been analyzed by appropriate number of descriptive and inferential statistics. In examining the state of minority shareholders’ rights and privileges in the sample listed firms, the study takes the perception of the executive/non-executive directors, the independent directors, and the shareholders and finds that they have shown different views from each other, indicating that there are likely irregular/unmethodical practices of the board directors in this respect in the sample firms. In measuring the level of importance on different issues of corporate governance on listed family-owned firms of Bangladesh given by the respondents, the study observed that the groups have a significant difference on minority shareholders’ rights and privileges and an insignificant difference on cumulative voting rights. Finally, the study gives some recommendations for the remedies of minority shareholders.

Minority Shareholders’ Rights and Privileges, Cumulative Voting, Annual General Meeting (AGM), Voting Rights

Suman Dey. (2023). Corporate Governance & Rights and Privileges of Minority Shareholders of Family-Owned Firms: Evidence from the Emerging Economy. International Journal of Economics, Finance and Management Sciences, 11(5), 273-284.

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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