The curse of self-serving directors

Big gathering: Shareholders attending a meeting of a company. When shareholders invest in a company, it is their hard-earned money going into the company, hence they will keep an eye on their investments. – Bloomberg

WHEN shareholders invest in a company, it is their hard-earned money going into this company, so you can bet that they will be keeping a close eye on their investments to ensure that the company delivers on its promises.

Generally speaking, investors will receive feedback from the directors and management on the company’s strategies for the next couple of years and how these are expected to boost profits for the company and for all those who invested in it.