SHAREHOLDERS’ INTERESTS VERSUS SOCIAL DEMANDS: INCONGRUOUS AGENDAS

In this note the chasm between shareholder and stakeholder interests in running of corporation an emerging economy general, third world country particular, is considered. A study two corporate governance models undertaken with intention to demonstrate that inclusive which does not relegate periphery more efficient under Two-Tier Board than Anglo-Saxon model followed South Africa. The reality entrenched supported African Companies Act 61 1973 (the model) appreciated; hence it argued unlikely Africa might, future, change board. answer international revolution realising societal expectations lies either King Report on Corporate Governance (2002) (hereinafter II) or modified mindset, both. It also proposals Policy document theDepartment Trade Industry (DTI) (South Company Law for 21st Century: Guidelines Reform, May 2004, GN 1183 GG 26493 23-06-2004 available at http://www.dti.gov.za/ccrdlawreview/companylaw.htm) optional representation stakeholders boards proposed inclusion statement recognising constitute a good start changing mindset towards being stakeholder-sensitive. focus II triple-bottom line approach negated by its ambivalence enforcement status stakeholdersin corporation. article then concludes emerged from history overt racism, significant recognition critical socio-economic need transformation create stable civil society. Globalisation has given rise remarkable increase power global Events sector can have negative repercussions only shareholders particular but society large, internationally. emergence powerful multinational corporations led demise state authority. spate failures, however, precipitated move strengthening rules ensure thatcompanies are well governed. Indeed been opined companies contribute enormously economic social wellbeing our societies (Worthington “Corporate Governance: Remedying Ratifying Directors Breaches” October 2000 (116) LQR 638).