1.   And, if he fails to disclose the existence of such information, does the shareholder have a direct cause of action?

2.   Shareholders have had a bumpy ride.

3.   Your shareholders have complete confidence in you.

4.   Ordinary shareholders have voting privileges, the right to receive dividends, and subscription privileges in the event of new shares being issued.

5.   If this situation arises, however, preferred shareholders do not have the right to have the firm declared insolvent, unlike bondholders.

6.   Because of this possibility, shareholders will have to incur monitoring costs or agency costs to ensure that managers behave properly.

7.   Existing shareholders have pre-emptive rights to buy new shares in proportion to their existing holdings.

8.   Accepting shareholders will have to wait for their cash for that period.