Since the 2008 financial crisis, we have been seen significant changes and movements in the capital markets. As an Investor Relations Officer (IRO) of the listed company, a continuing challenges is to attract and retain the investment funds from the capital market and keep a liquidity. Hence, the effective Investor Relations is very essential for the listed company because an effective investor relations programme is not only save valuable management time, but also can assist to deliver a fair valuation for the equity of enterprise, reduced funding costs and provide a strong shareholder base which will stand the company in good stead if times get tough, such as in low season business cycles or uncontrollable global financial crisis. The Investor Relations would be the eyes and ears of a company in the capital market and would deliver valuable insights into market sentiment, such as to potential investors and shareholders. An effective investor relations must have full commitments and supports of the senior management and C-suite. Investor Relations is a strategic management responsibility that requires an integration of corporate finance, communications, competence, perspective, and compliance to enable the most effective two-way communication between a company, investment community, and all shareholders. The key objective of IR is to achieve optimal valuation of the enterprise. The Investor Relations should articulate in a way that investors could understand the direction of the company and develop reasonable expectations for determining success via investor conference, roadshow, and other communication channels.

För många företag är det av intresse att kommunicera med ett flertal olika intressenter och för framförallt yngre bolag, som befinner sig i en tillväxtfas, kan det vara av stor vikt att kommunicera och nå ut till omvärlden på rätt sätt för att kunna växa och utvecklas i en positiv riktning. Just ett företags kommunikation med dess finansiella intressenter brukar benämnas investerarrelationer (IR), vilket till största del inbegriper att informera företagets intressenter om dess verksamhet och marknadsföra bolaget mot kapitalmarknaden. Även om det finns ett tydligt syfte till varför ett företag bedriver ett aktivt IR-arbete, kan det vara svårt att följa upp och utvärdera om arbetet har resulterat i de effekter som eftersträvas. För många företag saknas därför ofta en tydlig strategi och målbild för IR-arbetet samtidigt som det kan vara något som inte prioriteras på grund av begränsade ekonomiska och tidsmässiga resurser. Genom att undersöka de effekter som företag upplever av IR-arbete, skapas därför en bredare förståelse för hur arbetet bör prioriteras. Med detta som bakgrund är syftet med den här studien att undersöka och analysera vilka effekter svenska tillväxtbolag kan uppleva av strategiskt IR-arbete. Därtill syftar studien till att undersöka och analysera vilka specifika IR-aktiviteter som kan härledas till de upplevda effekterna samt vilka avvikelser som råder mellan upplevda effekter och IR-arbetets avsikter. Strategiskt IR-arbete definieras som det arbete relaterat till investerarrelationer som utförs utöver det lagen kräver av noterade företag. För att besvara studiens syfte och frågeställningar genomförs individuella intervjuer med svenska noterade små och medelstora tillväxtföretag samt IR-rådgivare. Totalt intervjuades åtta noterade företag och tre rådgivare. De upplevda effekter som har identifierats som följd av ett strategiskt IR-arbete består av ökad förståelse, ökat förtroende, ökat intresse och starkare relationer. Ingen koppling mellan specifika aktiviteter och specifika effekter observerades men vissa aktiviteter nämndes som särskilt betydelsefulla, vilka inkluderar investerarträffar, uppdragsanalys samt publicerande av information och förtydligande aktiviteter. De främsta avsikterna med IR-arbetet identifierades som ökad aktiehandel, bredare ägarbas, institutionellt ägande, uppfattas som ett seriöst bolag och rättvis värdering. Resultatet visar på en relativt tydlig överensstämmelse mellan IR-arbetets avsikter och de upplevda effekterna från arbetet. Dock föreligger en viss avvikelse i hur konkret intervjuobjekten resonerar kring IR-arbetets avsikter i förhållande till dess effekter. / For many companies, it is of interest to communicate with several different stakeholders. Especially for less mature companies who are in a growth phase, it can be of great importance to communicate and reach out to as many stakeholders as possible to grow and develop in an efficient manner. A company's communication with its financial stakeholders is usually referred to as Investor Relations (IR), which mainly consists of informing stakeholders about the company's operations and marketing the company towards the capital market. Even if there is a clear purpose to practice IR, it can be difficult to follow up and evaluate whether the IR has achieved the effects that are aimed for. Therefore, many companies lack a clear strategy and target for their IR and it may not at the same time be an activity that has high priority, as a result of limited resources. By examining the effects that companies experience from IR, a broader understanding of how IR should be prioritized, compared to other issues within a company, will be obtained. With this background, the purpose of this study is to investigate and analyze which effects Swedish growth companies can experience from strategic IR. In addition, this study aims to investigate and analyze which effects that can be derived from different IR activities and which deviations that exist between the intentions of IR and the perceived effects. Strategic IR is defined as all work related to IR that exceeds what is legally mandatory for publicly listed companies. To fulfill the purpose of the study, semi-structured individual interviews will be conducted with Swedish listed small and medium-sized growth companies as well as IR advisors. A total of eight listed companies and three advisors were interviewed. The perceived effects that have been identified are increased understanding, increased trust, increased interest, and stronger relationships. No link between specific activities and specific effects has been observed, although certain activities have been mentioned as of especial importance which includes investor meetings, commissioned research, and publication of information and clarifying activities. The main intentions of IR have been identified as increased stock liquidity, broader ownership base, institutional ownership, being perceived as a serious company, and fair valuation. The result shows a relatively distinct connection between the intentions of IR and the perceived effects. However, there is a certain deviation in how explicit the interview subjects reason about the intentions of IR in relation to its effects.

Que tipo de relação existe entre a exposição que uma empresa tem na mídia e o seu valor de mercado e o volume de negócios com suas ações? Partindo da premissa que a exposição de uma empresa na imprensa aumenta o alcance das informações relativas a ela e contribui para diminuir a assimetria informacional entre a administração da companhia e os investidores, o objetivo deste trabalho foi testar empiricamente se existe relação positiva entre a exposição de companhias abertas brasileiras na imprensa e seu valor de mercado e a liquidez de suas ações em bolsa. Trata-se do primeiro estudo feito no Brasil sobre o assunto. A partir de uma amostra de 152 companhias que representavam 81% do valor de mercado da bolsa brasileira em março de 2015, foi levantada a frequência de matérias que citaram essas empresas no jornal Valor Econômico no período de 20 trimestres entre janeiro de 2010 e dezembro de 2014. A técnica estatística usada foi a de regressão com Dados em Painel, que considera a variação tanto entre as companhias da amostra como também as alterações de valores no tempo para cada empresa. Como esperado a partir da plataforma teórica e da evidência de estudos internacionais, os resultados indicam uma relação estatisticamente significativa entre cobertura da mídia e valor de mercado. Os resultados foram consistentes tanto no teste com o múltiplo preço/valor patrimonial (P/VPA) como com a métrica Q de Tobin como variável dependente. Isso significa que, nesta amostra, as empresas que aparecem com mais frequência na imprensa econômica têm maior valor de mercado relativo do que aquelas que aparecem menos. Um terceiro teste foi feito para medir a relação da exposição na mídia com a liquidez das ações, também encontrando associação estatisticamente significante e positiva. No caso do primeiro teste, é importante destacar que, quando a amostra foi dividida em quartis por porte, a cobertura da mídia perdeu significância para explicar o valor de mercado das maiores empresas do país. Espera-se que o trabalho, ainda que com as limitações de um estudo pioneiro no país, possa contribuir para que companhias abertas, assessorias de imprensa, veículos de comunicação e também os reguladores do mercado conheçam melhor as relações existentes com a exposição na imprensa. Se a linha de pesquisa prosperar e uma relação de causa e efeito for comprovada, imagina-se que no futuro as empresas poderão usar planos de mídia em estratégias de relações com investidores e medir esses efeitos. / What kind of relationship exists between the exposure that a company has in the media and its market value and the traded volume of its stocks? Assuming that the exposure of a company in the press increases the extent of information relating to it and helps to reduce the information asymmetry between the company\'s management and investors, the objective of this study was to empirically test whether there is a positive relationship between Brazilian companies exposure in the press and its market value and the liquidity of its shares on the stock exchange. This is the first study in Brazil on the subject. From a sample of 152 companies representing 81% of the market capitalization of the Brazilian stock market in March 2015, I have collected the frequency of stories in which they were mentioned in the Valor Econômico newspaper in the period of 20 quarters between January 2010 and December 2014. The statistical technique used was the regression with Panel Data, which considers the variation both between the sample of companies as well as value changes over time for each company. As expected from the theoretical platform and evidence from international studies, the results indicated a statistically significant relationship between media coverage and market value. The results were consistent in both the test with the multiple price-to-book (P/B) as with the Tobin\'s Q ratio as the dependent variable. This means that companies in this sample that appear more frequently in the financial press have higher market value relative to those that appear less. A third test was done to measure the relationship between media exposure with the liquidity of the shares, also finding statistically significant positive association. For the first test, it is important to note that, when the sample was divided into quartiles by size, media coverage has lost significance in explaining the market value of the largest companies in the Brazilian market. It is expected that work, albeit with the limitations of a pioneering study in the country, can contribute to public companies, press offices, media outlets and also the market regulators to have a more informed perception of the scope of the exposure in the press. If the line of research to thrive and if a cause and effect relationship is proven, it is thought that, in the future, companies may use media plans in investor relations strategies and measure these effects.

Made available in DSpace on 2016-03-15T19:25:27Z (GMT). No. of bitstreams: 1 Salim Augusto Amed Ali.pdf: 1908550 bytes, checksum: 7095064d1ba3cd28c835632bfe5ac730 (MD5) Previous issue date: 2010-08-16 / Fundo Mackenzie de Pesquisa / This study aimed to gather the perceptions of three audiences in specific, about their understanding on the generation of value through the activity of Investor Relations in Brazilian listed companies. The first group, consisting of 16 professionals and experts in Investor Relations and the second group, comprised of 11 investment analysts and portfolio managers, were personally interviewed using structured interview, survey-type. The third group of individual investors answered a questionnaire via Internet, totaling 457 valid responses. The findings show that in the perceptions of the three groups, IR adds value to the company. They also pointed out several activities and structures presents in Investor Relations that are considered more relevant in the sense of adding value to the company. Reflecting these activities and structures, it was possible to divide them into five groups: Communication, Activities, Meetings with the Market, Strategy and Metrics of Direct Measurement. The Communication was of higher importance, noting that IR and the company must be transparent, providing the information in a quick, clear, reasoned way, and the IR website and electronic media were identified as the main means. Activities undertaken by IR, shows relevance the contact with foreign investors; the explanation of profit distribution policy; relevant future events, as new investments; the diversification of the shareholder bases; comparative analysis of the sector in which the company operates; and actions to promote the liquidity of shares. Regarding Meetings With the Market, public meetings, individual (with sell side, buy side and institutional) and road shows, were revealed as relevant. About the Strategy in IR, it became clear that it must be drawn on the Executive Board, and the area should be subordinated to the CEO. Finally, Metrics of Direct Measurement point to three main items, namely the amount of "houses" covering the company's stock, the average market valuation compared to the valuation prepared by the company itself, and decrease in volatility of stock price compared with peer companies in the industry. The article seeks to contribute to, in future searches, build more objective and justified proxies for the quality of IR, in an attempt to quantify the value that the IR area adds to the public companies. / A presente dissertação objetivou coletar a percepção de três públicos em específico acerca do entendimento dos mesmos quanto à geração de valor por meio da atividade de Relações com Investidores em companhias abertas brasileiras. O primeiro grupo, formado por 16 profissionais e especialistas em Relações com Investidores, e o segundo grupo, formado por 11 analistas de investimento e gestores de carteiras, foram entrevistados pessoalmente por intermédio de entrevistas estruturadas do tipo survey. O terceiro grupo, dos investidores individuais, respondeu a questionário via internet, totalizando 457 respostas válidas. Os achados mostram que na percepção dos três grupos, RI agrega valor à companhia. Os mesmos ainda apontaram diversas atividades e estruturas presentes em Relações com Investidores que se demonstram mais relevantes no sentido de agregar valor à companhia, bem como aquelas que se demonstram menos relevantes. Espelhando essas atividades ou estruturas, foi possível dividi-las em cinco grupos: Comunicação, Atividades, Reuniões com o Mercado, Estratégia e Métricas Diretas de Mensuração. A Comunicação foi a de maior relevância, apontando que RI e a companhia devam ser transparentes, apresentando as informações de modo rápido, claro e fundamentado, sendo o website de RI e as mídias eletrônicas apontadas como os principais meios. Nas Atividades realizadas por RI tomam relevância o contato e atendimento aos investidores estrangeiros; a política de distribuição de resultados; eventos futuros relevantes, como novos investimentos; a diversificação da base acionária; as análises comparativas do setor em que a companhia atua e; as atividades que favoreçam a liquidez das ações da empresa. Nas Reuniões com o Mercado, as reuniões públicas, individuais (com sell side, buy side e institucionais) e road shows, se evidenciaram como relevantes. Quanto à Estratégia em RI, evidenciou-se que a mesma deve ser traçada na Diretoria Executiva, e a área subordinada ao Presidente Executivo. Por fim, as Métricas Diretas de Mensuração apontam três itens como principais, quais sejam a quantidade de casas cobrindo a ação da empresa, o valuation médio de mercado comparado ao valuation elaborado pela própria companhia e a diminuição na volatilidade no preço da ação comparado com as companhias pares do setor. O estudo busca contribuir para que em futuras pesquisas seja possível a construção de proxies objetivas e mais justificadas para a qualidade do RI, na tentativa de quantificar o valor que a atividade de Relações com Investidores agrega à companhia aberta.

This thesis comprises three studies on CEO compensation in the UK. It specifically examines the role of CEO defined-benefit pensions, compensation consultants and CEO stock options. Firstly, research on the role of executive pensions is still at a stage of infancy due to data difficulties (Sundaram and Yermack, 2007). By taking advantage of better disclosure requirements with the introduction of Directors’ Remuneration Report Regulations (DRRR) in 2002, this thesis examines the determinants and effects of CEO defined-benefit pensions. Consistent with rent extraction hypothesis (Bebchuk and Fried, 2005; Kalyta and Magnan, 2008), it finds that pensions are largely determined by CEO power over boards of directors. There is no evidence that pensions reduce the agency cost of debt as suggested by Edmans (2008) and Sundaram and Yermack (2007). Instead they increase the agency cost of equity by discouraging CEO risk-taking and reducing pay-performance relationship. Consistent with the argument in Gustman et al. (1994), Ippolito (1991) and Lazear (1990), this thesis also finds that pensions do bond a CEO to the firm she manages. Secondly, because of the lack of disclosure regarding compensation consultants used by companies, the empirical evidence is so far limited on how the practice of employing compensation consultants influences CEO pay. By taking advantage of better disclosure requirements since the publication of the DRRR (2002), this thesis examines the effect of using compensation consultants on CEO pay. Unlike Murphy and Sandino (2008), this thesis finds no evidence that firms use multiple pay consultants to justify or legitimize higher CEO pay. In light of the managerial power theory, this thesis instead finds that pay consultants are more concerned with the risk of losing business with their client firms. This latter finding explains why the use of pay consultants is associated with greater executive pay (see Armstrong, Ittner and Larcker, 2008; Cadman, Carter and Hillegeist, in press; Conyon, Peck and Sadler, 2009; Murphy and Sandino, 2008; Voulgaris, Stathopoulos and Walker, 2009). Thirdly, despite the importance of the issue, the existence of a link between the CEO stock options and earnings management is currently understudied in the UK. The UK context is appealing because of two distinctive corporate governance features that limit opportunistic earnings management. These are the absence of CEO duality in general (Cornett, Marcus, and Tehranian, 2008) and the increased outside director’s membership on boards since the publication of the Cadbury Report (1992) (Peasnell, Pope, and Young, 2000). By examining earnings management prior to stock option grant and exercise periods, this thesis adds to the study of Kuang (2008) that examines earnings management during stock option vesting periods. Overall, some evidence has been found that earnings are managed downwards prior to stock option grant periods. Consistent with the US-based studies, this thesis finds strong evidence of upward earnings management prior to a stock option exercise period. It shows that the UK’s distinctive governance features have not restrained opportunistic earnings management prior to stock option grants and exercises. In brief, this thesis provides some empirical evidence that the use of two pay components in the CEO pay package, namely, the defined-benefit pensions and stock options, do not necessarily promote CEO-shareholder interest alignment. The use of pay consultants in CEO pay-setting is also fraught with managerial influence. In support of the managerial power theory, I therefore suggest that these three factors can be abused by CEOs to extract excess compensation at the expense of shareholders. In this context, these three factors can themselves be considered as the sources of the agency cost. Future research might examine the mechanisms that can be deployed to govern the use of defined-benefit pensions, stock options and pay consultants in CEO pay design.

Empirical evidence indicates that companies that reduce information asymmetry by increased voluntary disclosures achieve several benefits, such as lower cost of capital, improved pricing, and liquidity of their shares. Despite the possibility of such benefits, many studies report varying degrees of voluntary disclosure behaviour that is attributable to various factors. Recent studies indicate that investors’ investment horizon has a significant effect on actions taken by management. Companies with predominantly short-horizon investors spend less on research and development, invest in shorter-term projects that are less profitable than longer-term projects, and are more likely to manipulate earnings to meet short-term earnings expectations. This study investigates whether investors’ investment horizon has an effect on the quality of companies’ information environment. Long-horizon investors should be familiar with their investee company’s risks and rewards, using both their own internal information gathering processes and the cumulative information disclosed by management over time. Moreover, over the course of a long-term relationship, they can become familiar with management’s capability to deliver long-term sustainable returns. Long-horizon investors should therefore be less concerned with short-term fluctuations of earnings and management’s public explanations and disclosures thereof. I hypothesise that higher (lower) proportions of long-horizon investors are associated with lower (higher) quality voluntary disclosure. The shareholder familiarity hypothesis was tested in this study, using an ordinary least squares regression. Voluntary disclosures were observed via the channel of companies’ websites. A checklist was compiled of best practices for online investor relations, and content analyses were conducted on the websites of 205 companies listed on the Johannesburg Stock Exchange. Shareholder familiarity was proxied by shareholder stability, measured over nine years. The stability measure was lagged by one year to create a temporal difference between the shareholder profile and disclosure behaviour. I found that companies with a profile of unstable investors that are larger, younger, dual-listed and have a Big4 auditor have higher quality online investor relations practices. The hypothesis of a negative association between shareholder familiarity and voluntary disclosure quality is therefore accepted. This study extends the theory on information asymmetry and voluntary disclosure by providing evidence supporting the argument that investor horizon is a predictor of voluntary disclosure quality. The dictum of more is better does not hold in all scenarios. It is important for financial directors and investor relations officers to establish the investment horizon profile of their respective companies’ shareholders before they embark on extensive disclosure programmes. / Financial Intelligence

Equity crowdfunding, which has primarily been developed by private operators, is considered as an alternative financing form where capital is raised from a group of individuals through digital platforms. In the absence of formal regulations and existing high information asymmetries between businesses and crowd-investors, businesses need to build up legitimacy and trust through social actions. In this way, knowing the main participants and developing good relationships with them, become key factors for crowdfunding success. The purpose of this thesis is to examine equity crowdfunding and its context by identifying and describing stakeholders that interact there. In particular, this thesis aims to describe relationships that are being developed between businesses and their crowd-investors. The data has been collected through interviews with both businesses and investors that have experience in using equity crowdfunding in a Swedish context. The interview data have been analysed by using the stakeholder theory. This has helped us to identify and characterise several stakeholders that exist in the context of equity crowdfunding. Especially, two stakeholder management approaches – arm length- and fairness approach - have been chosen as the analytical tools for this thesis. These categories have primarily been used to analyse relationships that are being developed between businesses and crowd-investors. Our discussion highlights equity crowdfunding as a new and alternative type of capital market, where participants act more cooperatively and have versatile roles. As a financial tool, equity crowdfunding opens up possibilities for closer interaction between businesses and investors. As a consequence of high information asymmetries, developing relationships and creating a transparent environment through active communication, become particularly important for businesses. However, our data has shown us that in reality the collaborative relationship depends on how much businesses allow to be influenced by investors as well as how much the investors request participation.

Que tipo de relação existe entre a exposição que uma empresa tem na mídia e o seu valor de mercado e o volume de negócios com suas ações? Partindo da premissa que a exposição de uma empresa na imprensa aumenta o alcance das informações relativas a ela e contribui para diminuir a assimetria informacional entre a administração da companhia e os investidores, o objetivo deste trabalho foi testar empiricamente se existe relação positiva entre a exposição de companhias abertas brasileiras na imprensa e seu valor de mercado e a liquidez de suas ações em bolsa. Trata-se do primeiro estudo feito no Brasil sobre o assunto. A partir de uma amostra de 152 companhias que representavam 81% do valor de mercado da bolsa brasileira em março de 2015, foi levantada a frequência de matérias que citaram essas empresas no jornal Valor Econômico no período de 20 trimestres entre janeiro de 2010 e dezembro de 2014. A técnica estatística usada foi a de regressão com Dados em Painel, que considera a variação tanto entre as companhias da amostra como também as alterações de valores no tempo para cada empresa. Como esperado a partir da plataforma teórica e da evidência de estudos internacionais, os resultados indicam uma relação estatisticamente significativa entre cobertura da mídia e valor de mercado. Os resultados foram consistentes tanto no teste com o múltiplo preço/valor patrimonial (P/VPA) como com a métrica Q de Tobin como variável dependente. Isso significa que, nesta amostra, as empresas que aparecem com mais frequência na imprensa econômica têm maior valor de mercado relativo do que aquelas que aparecem menos. Um terceiro teste foi feito para medir a relação da exposição na mídia com a liquidez das ações, também encontrando associação estatisticamente significante e positiva. No caso do primeiro teste, é importante destacar que, quando a amostra foi dividida em quartis por porte, a cobertura da mídia perdeu significância para explicar o valor de mercado das maiores empresas do país. Espera-se que o trabalho, ainda que com as limitações de um estudo pioneiro no país, possa contribuir para que companhias abertas, assessorias de imprensa, veículos de comunicação e também os reguladores do mercado conheçam melhor as relações existentes com a exposição na imprensa. Se a linha de pesquisa prosperar e uma relação de causa e efeito for comprovada, imagina-se que no futuro as empresas poderão usar planos de mídia em estratégias de relações com investidores e medir esses efeitos. / What kind of relationship exists between the exposure that a company has in the media and its market value and the traded volume of its stocks? Assuming that the exposure of a company in the press increases the extent of information relating to it and helps to reduce the information asymmetry between the company\'s management and investors, the objective of this study was to empirically test whether there is a positive relationship between Brazilian companies exposure in the press and its market value and the liquidity of its shares on the stock exchange. This is the first study in Brazil on the subject. From a sample of 152 companies representing 81% of the market capitalization of the Brazilian stock market in March 2015, I have collected the frequency of stories in which they were mentioned in the Valor Econômico newspaper in the period of 20 quarters between January 2010 and December 2014. The statistical technique used was the regression with Panel Data, which considers the variation both between the sample of companies as well as value changes over time for each company. As expected from the theoretical platform and evidence from international studies, the results indicated a statistically significant relationship between media coverage and market value. The results were consistent in both the test with the multiple price-to-book (P/B) as with the Tobin\'s Q ratio as the dependent variable. This means that companies in this sample that appear more frequently in the financial press have higher market value relative to those that appear less. A third test was done to measure the relationship between media exposure with the liquidity of the shares, also finding statistically significant positive association. For the first test, it is important to note that, when the sample was divided into quartiles by size, media coverage has lost significance in explaining the market value of the largest companies in the Brazilian market. It is expected that work, albeit with the limitations of a pioneering study in the country, can contribute to public companies, press offices, media outlets and also the market regulators to have a more informed perception of the scope of the exposure in the press. If the line of research to thrive and if a cause and effect relationship is proven, it is thought that, in the future, companies may use media plans in investor relations strategies and measure these effects.

As a company is a juristic person it can only act through human agency. A question that arises because of this fact is under what circumstances a company can be held to a contract by a third party where its representative was unauthorised to enter into such contract. There should be a careful weighing and balancing of the interests of the shareholders and the company on the one hand and the contracting third party on the other. It is further important to have legal certainty on the validity and enforceability of contracts concluded by and with companies as the absence of certainty can hamper business dealings with companies which would have an impact on the economy. The common-law principles of agency form the foundation upon which representation within the context of company law takes place. The law of agency has been adapted in the context of company law to satisfy the unique needs that have originated in this regard. One such adaptation is the creation of the Turquand rule by the English courts which rule was taken over by the South African courts. One of the primary reasons for creating the Turquand rule was due to the harsh effect that the common-law doctrine of constructive notice had on third parties dealing with a company. In this study an examination of the current legal position regarding representation of a company in South Africa was undertaken. The history and development of the common-law principles of agency and doctrines that are unique to representation in a company law context are analysed and the relevant sections of the Companies Act 71 of 2008 are discussed. The integration of the common-law principles with the relevant provisions of the Companies Act 71 of 2008 is considered and recommendations are made in respect thereof. In support of the analysis, a comparative study was undertaken of the history and development of this subject matter in England. It was concluded that South African company law, with all its shortcomings and uncertainties is still to be preferred above the position in England. / Aangesien ‘n maatskappy ‘n regspersoon is, kan dit slegs deur middel van natuurlike persone as agente optree. ‘n Vraag wat as gevolg van hierdie feit ontstaan is onder watter omstandighede ‘n maatskappy deur ‘n derde party gebonde gehou kan word aan ‘n kontrak waar die maatskappy se verteenwoordiger nie gemagtig was om die kontrak aan te gaan nie. Daar behoort ‘n versigtige afweging te wees tussen die belange van die maatskappy en sy aandeelhouers aan die een kant en ‘n derde party wat met die maatskappy kontrakteer aan die ander kant. Dit is verder belangrik om regsekerheid te hê oor die geldigheid en afdwingbaarheid van kontrakte wat met maatskappye aangegaan word aangesien die afwesigheid daarvan besigheidsverkeer met maatskappye kan kortwiek wat ‘n impak op die ekonomie tot gevolg sal hê. Die gemeenregtelike beginsels van verteenwoordiging vorm die basis waarop verteenwoordiging binne die konteks van maatskappyereg plaasvind. Verteenwoordigingsreg is aangepas binne die konteks van maatskappye om voorsiening te maak vir die unieke behoeftes wat in hierdie verband ontstaan het. Een sodanige aanpassing is die skepping van die Turquand reël deur die Engelse howe, welke reël deur die Suid-Afrikaanse howe oorgeneem is. Een van die hoofredes vir die skepping van die Turquand reël is die onregverdige uitwerking wat die gemeenregtelike leerstuk van toegerekende kennis op derde partye gehad het wat met ‘n maatskappy onderhandel. ‘n Studie van die huidige regsposisie rakende verteenwoordiging van ‘n maatskappy in Suid-Afrika is hierin gedoen. Die geskiedenis en ontwikkeling van die gemeenregtelike beginsels van verteenwoordiging en leerstukke eie aan verteenwoordiging in die konteks van maatskappyereg is geanaliseer. Die betrokke artikels van die Maatskappywet 71 van 2008 word bespreek. Die integrasie van hierdie gemeenregtelike beginsels met die betrokke bepalings van die Maatskappywet 71 van 2008 is oorweeg en aanbevelings in verband daarmee gemaak. Ter ondersteuning van die analise is ‘n vergelykende studie van die gekiedenis en ontwikkeling van hierdie onderwerp in Engeland onderneem. Daar is tot die slotsom gekom dat die Suid-Afrikaanse maatskappyereg, met al sy tekortkominge en onsekerhede nogsteeds bo die posisie in Engeland te verkies is. / Mercantile Law / LL. M.

Section 71(3) of the Companies Act 71 of 2008 has introduced into South African company law a provision which for the first time permits the board of directors to remove another director from office in certain specific instances. A further significant innovation in the Companies Act 71 of 2008 is contained in section 162, which empowers a court to make an order declaring a director delinquent or placing him under probation in specific instances. The effect of section 162 is that a court is empowered to remove a director from the board of directors. The focus of this thesis is the removal of directors from office by the board of directors and by the judiciary. The thesis explores the underpinning philosophy of the statutory provisions relating to the removal of directors from office. It also examines the impact of the power given to the board of directors and to the courts to remove a director from office. The grounds and the procedures for the removal of directors by the board of directors and the judiciary are examined. The fiduciary duties applicable to directors in removing a director from the board of directors are also explored. In addition, this thesis examines the removal of directors holding multiple positions or capacities in relation to a company, such as an employee or a shareholder with loaded voting rights. The remedies which may be relied on by a director who has been removed from office by the board of directors are examined. Recommendations are made to strengthen and improve the provisions in the Companies Act 71 of 2008 relating to the removal of directors from office by the board of directors and the judiciary. Amendments to the Companies Act 71 of 2008 are suggested to remove ambiguities; to guard against the abuse of sections 71(3) and 162; to improve the grounds and procedures for the removal of directors by the board of directors and the judiciary, and to enhance the remedies that may be relied on by a director who has been removed from office by the board of directors. / Artikel 71(3) van die Maatskappywet 71 van 2008 het ’n bepaling tot Suid-Afrikaanse maatskappyreg toegevoeg wat die direksie vir die eerste keer in staat stel om ’n ander direkteur in sekere spesifieke gevalle uit sy of haar amp te verwyder. ’n Verdere belangrike vernuwing in die Maatskappywet 71 van 2008 word in artikel 162 vervat, wat ’n hof magtig om ’n bevel uit te vaardig wat ’n direkteur misdadig verklaar of hom of haar in spesifieke gevalle aan ’n proeftydperk onderwerp. Die effek van artikel 162 is dat ’n hof by magte is om ’n direkteur uit die direksie te verwyder. Die fokus van hierdie tesis is die verwydering van direkteure uit hul ampte deur die direksie en die regbank. Die tesis verken die onderliggende filosofie van die statutêre bepalings wat met die verwydering van direkteure uit hul ampte verband hou. Dit ondersoek ook die impak van die bevoegdheid wat aan die direksie en die howe verleen word om ’n direkteur uit sy of haar amp te verwyder. Die gronde en prosedures vir die verwydering van direkteure deur die direksie en die regbank word ondersoek. Die fidusiêre pligte van toepassing op direkteure by die verwydering van ’n direkteur uit die direksie word ook verken. Daarbenewens ondersoek hierdie tesis die verwydering van direkteure wat veelvuldige posisies of hoedanighede met betrekking tot ’n maatskappy beklee, soos ʼn werknemer of aandeelhouer met gelaaide stemregte. Die regsmiddele waarop ’n direkteur, wat deur die direksie uit sy of haar amp verwyder is, kan steun, word ondersoek. Aanbevelings word gemaak om die bepalings in die Maatskappywet 71 van 2008, wat met die verwydering van direkteure uit hul ampte deur die direksie en regbank verband hou, te versterk en te verbeter. Wysigings aan die Maatskappywet 71 van 2008 word voorgestel om dubbelsinnighede uit te skakel; om teen die misbruik van artikels 71(3) en 162 te waak; om die gronde en prosedures vir die verwydering van direkteure deur die direksie en die regbank te verbeter, en om die regsmiddele waarop ’n direkteur wat deur die direksie uit sy of haar amp verwyder is kan steun, te versterk. / ISigaba 71(3) Somthetho weZinkampani 71 ka 2008 sewuze wangenisa emithethweni yezinkampani zaseNingizimu Afrika, umthetho ongowokuqala ovumela ibhodi labaqondisi ukuthi libe namandla wokugudluza omunye umqondisi esikhundleni sakhe ngaphansi kwezimo ezithile. Olunye ushintsho olusha kuMthetho wama-71 weZinkampani ka 2008 uqukethwe yiSigaba 162, wona ugunyaza inkantolo ukuthi ikhiphe umyalelo owazisa umqondisi ngokuthi unecala noma obeka umqondisi ngaphansi kophenyo, phecelezi “probation” ngesinye isikhathi. Inhloso yeSigaba 162 wukunikeza inkantolo igunya lokugudluza umqondisi kwibhodi labaqondisi. Impokophelo yale thisisi wukugudluzwa kwabaqondisi, bagudluzwe yibhodi labaqondisi kanye nomthetho/nobulungisa. Ithisisi ihlola ifilosofi yemithetho ekhishiwe emayelana nokugudluzwa kwabaqondisi ezikhundleni zabo, Kanti futhi ihlola umthelela wamandla anikezwe ibhodi labaqondisi kanye nezinkantolo ukuthi zigudluze umqondisi esikhundleni. Izizathu kanye nengqubo elandelwayo mayelana nokugudluzwa kwabaqondisi yibhodi labaqondisi kanye nomthetho nazo ziyahlolwa. Imisebenzi emayelana nokuthembeka eyenziwa ngabaqondisi ukugudluza umqondisi kwibhodi labaqondisi nayo iyacwaningwa Ngaphezu kwalokhu, le thisisi .iphenya ukugudluzwa kwabaqondisi abaqokwe ezikhundleni eziningi noma abanegunya elithize ngokwengqubo yenkampani, enjengesisebenzi, phecelezi “employee” noma umabelwa-mashezi onamalungelo amaningi okuvota, phecelezi, “loaded with voting rights”. Izeluleko ezingasetshenziswa wumqondisi ogudluzwe esikhundleni sakhe yibhodi labaqondisi nazo ziyahlolwa. Izincomo nazo ziyenziwa ngenhloso yokuqinisa kanye nokuthuthukiswa kwamandla oMthetho we-71 weZinkampani ka 2008, mayelana nokugudluzwa kwabaqondisi ezikhundleni yibhodi labaqondisi kanye nomthetho. Izinguquko zoMthetho wama-71 weZinkampani ka 2008 ziqonde ukususa izixakaxaka, ukulwa nokudlelezelwa kweSigaba 71(3) kanye no 162, ukuthuthukisa izizathu kanye nezingqubo zokugudluzwa kwabaqondisi yibhodi labaqondisi kanye nomthetho, ukuqinisa izindlela zokulungisa ezingasetshenziswa wumqondisi osegudluziwe esikhundleni yibhodi labaqondisi. / Mercantile Law / LL. D.