ShmoopTube

Where Monty Python meets your 10th grade teacher.

Search Thousands of Shmoop Videos


Incorporation Videos 104 videos

Finance: What is a Dissident Director?
4 Views

What is a Dissident Director? The Board of Directors of a company usually reaches a consensus the majority of the time in order to decide on polici...

Finance: What is a Safe Harbor?
3 Views

"Safe harbor" refers to the notion that, if you follow a basic set of rules, you cannot be found guilty of a crime or shady dealings.

Finance: What is Contingent Liability?
4 Views

What is Contingent Liability? Contingent liability refers to a possible liability in the future contingent upon some other event being the trigger....

See All

Finance: What is a Dissident Director? 4 Views


Share It!


Description:

What is a Dissident Director? The Board of Directors of a company usually reaches a consensus the majority of the time in order to decide on policies to move forward. There are occasions, however, when a Director opposes the other board members and proposes other policies that lack the support required to be enacted in a vote. Such a director is referred to as a Dissident Director. Sometimes the dissent can be reasoned and amicable, but other times it can be contentious and become acrimonious.

Language:
English Language

Transcript

00:00

Finance allah shmoop What is a dissident director Well everyone

00:08

else wanted diet but thiss guy well he just insisted

00:12

on regular he's the dissident going against the state against

00:17

the tide against the vote while a dissident director is

00:21

a member of the board who either votes against the

00:24

set of new mandates that everyone else went thumbs up

00:29

on and or who initiates her own vote which is

00:33

pretty much the opposite of what everyone else wants You

00:36

know we know people like that like maybe they voted

00:39

to replace all the toilets in the corporate washrooms with

00:42

today's It's happened Really In real life a dissident director

00:46

can dissent against popular board vote in things like the

00:50

company accepting a takeover bid at fifty eight bucks a

00:54

share in stock Well that dissident director might demand that

00:58

the takeover dobie paid in cash because well she doesn't

01:02

trust the stock market's appraisal of the valuation of the

01:05

stock currency being used to take over their company Well

01:09

another descent might revolve around a company seeking toe over

01:13

pay for an acquisition Like that dissident director might be

01:16

the lone rational voice suggesting that they not pay Ah

01:20

Hundred times revenue to take out a competitor And the

01:24

dissident director may also come from an operational perspective In

01:28

that they want to fire the ceo for poor performance

01:31

whereas the rest of the board loves being on the

01:33

ceo's good side for the selfies and you know all

01:36

the good instagram ingredients Well sometimes all it takes is

01:39

one brave soul to go against the crowd although when

01:42

it comes to the diet coke thing it might just 00:01:45.209 --> [endTime] be better toe Pick your battles

Related Videos

GED Social Studies 1.1 Civics and Government
39794 Views

GED Social Studies 1.1 Civics and Government

Fake News
11938 Views

How do you tell fake news from real news?

Finance: What is Bankruptcy?
260 Views

What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...

Finance: What is a Dividend?
1777 Views

What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...

Finance: How Are Risks and Rewards Related?
589 Views

How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...