1.   Founding shareholders are reluctant to dilute their controlling holdings or to sell shares at depressed prices.

2.   Some shareholders are unhappy with the running of the club and are concerned with the way the recent annual meeting was conducted.

3.   This is because shareholders are residual claimants to the value of the firm.

4.   Thus, the shareholders are principals and the managers are agents.

5.   Therefore, should the shareholder be subject to a higher rate of tax he or she will have to make additional payments to the Inland Revenue.

6.   Legally, the shareholders are the owners of the company and the directors are elected to run it on their behalf.

7.   Shareholders are right to wonder whether, if business is going to be that good, it should be they rather than their managers who make the killing.