Equitable Treatment of Shareholders

The equitable treatment of all shareholders — including minority and foreign shareholders — is a fundamental principle of corporate governance.

All shareholders of the same series of a class should be treated equally, with the same voting rights, access to information, and protection from abusive actions by controlling shareholders or management. Key protections include pre-emptive rights (the right to participate in new share issues), tag-along rights (the right of minority shareholders to participate in sales by controlling shareholders), and requirements for supermajority approval of fundamental changes. Insider trading prohibitions and disclosure requirements for significant shareholdings are essential safeguards.

Further Reading

• G20/OECD Principles of Corporate Governance
• ESRS

Key Resources

• OECD Principles — Equitable Treatment of Shareholders

Related Topics

• Board Responsibilities
• Disclosure & Transparency
• Sustainability & Resilience