Widely held and controlled companies differ considerably in the governance problems their investors face. In widely held firms, the concern is about opportunism by managers, who exercise de facto control in controlled firms, the concern is about opportunism by the controlling shareholder at the expense of minority shareholders.

A company might have a single shareholder or group of shareholders with majority control of the company, either through holding the majority of the company's outstanding equity or through holding shares with superior voting rights.

Where the dealing party has reached an agreement or consensus with the controlling shareholder of the listed company on the assignment of the equity of the listed company or on the recommending of directors to the listed company, which may result in the change of the actual controlling right of the listed company, the controlling shareholders of the listed company and their affiliates shall withdraw from voting.

(3) Enterprises controlled or actually controlled by a securities firm

1 The specified parties are the controlling shareholders, the actual controllers of the listed company or the affiliates controlled by the listed company

2 Actually control 5 equity or more of the securities firm by holding equity of the shareholders of the securities firm or by any other means.

(2) Shareholders and actual controllers of a securities firm

(1) parties who are actually capable of controlling the Company or funds under the management of the Company or parties exerting great influence upon the Company or the operation of funds, like controlling shareholders of the Company and trustees of funds, etc. and

1 Illegally buying securities issued by shareholder of the securities firm or other issuer with major relationship to securities firm against regulation

These arrangements are, indeed, important for investors in widely held firms. When a company has a controlling shareholder, however, control contests are not possible, and the arrangements governing such contests are thus irrelevant.

Dr. Bamanga Tukur, Group Chairman of the BHI Holdings Limited

Dr. Bamanga Tukur, Group Chairman of the BHI Holdings Limited

It should be noted that the Department of Statistics defines foreign controlled companies as either wholly owned (100 per cent) or majority owned (at least 50 per cent of paid up shares).

This relatively high percentage required for control implies that many SINTNCs may be considered as local controlled even if some 20 49 of their shares are owned by a single foreign investor.

Article 33 Joint stock insurance companies, joint stock insurance holding (group) companies, exclusively foreign funded insurance companies and Sino foreign joint venture insurance companies shall be subject to the present Guidelines, while exclusively state owned insurance companies, branches of foreign insurance companies and insurance assets management companies shall be under the present Guidelines by analogy.

Other companies in the holding company were still in the country, but involved in exclusively economic activities.

The following year, Vneshtorgbank purchased a controlling stake in the privatized United Georgian Bank, Georgia s third largest. In effect, Vneshtorgbank renationalized United Georgian Bank, but the new owner was the Russian state.

While the claimant and the respondent had signed the arbitration agreement, a company (the sole shareholder of the respondent), the individual shareholders of that company, and the wholly owned subsidiaries of the claimant had not.

The securities regulatory agency under the State Council can enquire the bank accounts of a securities firm and enterprises controlled or actually controlled by the securities firm with approval of a person responsible of the securities regulatory agency under the State Council with a view to make a thorough investigation of business and financial status of the securities firm.

Foreign firms are now barred from majority ownership of banks and insurance companies. Relaxing such restrictions would strengthen the financial sector and play an important role in economic growth.

She was also charged with offences that occurred in 1997 in connection with Yukos' purchase of shares of the Vostochno Neftyanaya Company.

The negative growth was also attributed to repayments of intra company loans by foreign subsidiaries and or reduction in the equity of foreign subsidiaries controlled by Singaporean TNCs. This latter phenomenon represents negative outflows of FDI from host countries back to Singapore.

Although Executive Outcomes was registered in Pretoria, its holding company, Strategic Resources Corporation (SRC), was also registered in London.

2 The specified parties have obtained the actual controlling right of the listed company through the purchase of the shares issued this time

This is the case of Executive Outcomes and its holding company, Strategic Resources Corporation, which is working in several countries with a profile similar to that described earlier.

For example, the United Kingdom s Independent Commission on Banking (ICB) has proposed ring fencing retail activities from investment banking activities in separately capitalized divisions of a bank holding company. This is a compromise aimed at minimizing the incentive to gamble with public insurance while allowing some economies of scale for banking activities.

Because the basic governance problems in the two types of firms are considerably different, arrangements that benefit investors in widely held firms might be irrelevant or even counterproductive in controlled firms, and vice versa. As a result, applying a single standard for assessing investor protection worldwide is bound to miss the mark with respect to widely held firms, controlled firms, or both.

(d) Guidelines allowing an insolvency representative in the insolvency of a holding company to steer the actions to be taken by the (insolvent) subsidiary

He is a non executive chairman of Johnnic Holdings, MTN Group Limited and the South African Special Risks Insurance Association (SASRIA).

It was observed, however, that the creditors apos objective in obtaining shares as security was not to sell them in case of the project company apos s default, but to take over the control of the project company.

It was, however, part of a holding company, Strategic Resources Corporation (SRC), which included companies with various social purposes that provided different economic services.

Article 11 If the purchase or sales of assets by a listed company or the company it controls or controlled by it meets one of the following standards, a material assets reorganization is constituted

KPC, the shares of which are wholly owned by the State of Kuwait, is responsible for the coordination of Kuwait s entire public sector oil and gas industry and is the holding company of all other companies operating in the oil and petrochemical sector.

Indeed, while the FDIC and the BoE were working on their plan, the US Federal Reserve was developing proposals that will expose overseas banks in the US to a far tighter set of controls, and closer supervision, than they have hitherto experienced. The Fed is seeking to oblige foreign banks to create a holding company to own their separately capitalized subsidiaries, effectively giving the Fed direct oversight of their business.

Henry O. Murchison Corporation.

Investors and public officials in countries where controlled companies dominate should stop using global governance standards based on the designers experience with widely held firms in the US. Rather, they should strive to develop standards appropriate for controlled firms.

Finally, when assessing controlled companies, the independence of directors should not be judged largely by looking at the extent to which they are independent of the company on whose board they serve. Rather, considerable attention should be given to their independence from the controlling shareholder.

A State of nationality of shareholders in a corporation shall not be entitled to exercise diplomatic protection in respect of such shareholders in the case of an injury to the corporation unless

(1) Where a securities firm entrusts others or accepts others entrustments to hold or manage the stock right of the securities firm, or subscribe for, assign or actually hold the stock right of the securities firm

1) List of possible sources individual private company multinational private company investment fund Global Environment Facility World Bank International Finance Corporation African Development Bank Asian Development Bank European Bank for Reconstruction and Development Inter American Development Bank United Nations Development Programme Other

If the specified parties hold or control over 30 of the shares of the listed company or the percentage continues to increase after 30 due to their purchase of the shares issued by the listed company, and the general meeting of the shareholders of the listed company agree to exempt the specified parties from sending the offer, the application for the exempt of the offer obligation can be made together with the listed company s application submitted to the CSRC for the issuance of shares.

Article 42 The price of the shares issued by the listed company shall not be lower than the average trading price of the company s stocks over the 20 trading days prior to the day of the public announcement of the decision of the board of the directors on purchasing assets through issuing shares.

On the 27th, Zhejiang Geely Holding Group announced that it has reached an agreement with European fund company Cevian Capital to acquire 82.47 million A shares and 78.77 million B shares of AB Volvo from Cevian Capital.

Family capitalism in the continental European model uses relatively little capital to achieve maximum control. It frequently depends on very complex corporate structures, with multiple layers of holding companies, as well as privileged shares that can guarantee the continuation of control.

This may involve the acquisition of shareholdings, the establishment of subsidiaries, holding companies, etc.