Corporate Governance in Protecting Minority Shareholders

Abstract

     Commercial companies are a fundamental pillar in the growth of national and global economies due to their direct impact on human livelihoods, self-sufficiency, and economic stability. In light of the need to safeguard these entities and ensure their continuity, the importance of corporate governance has emerged as a regulatory tool aimed at enhancing transparency and accountability within boards of directors, particularly in regard to protecting the rights of minority shareholders. These shareholders often do not allow them to influence the fateful decisions of the board of directors. This study seeks to establish a legal framework that protects minority shareholders from losing their rights by controlling shareholders through strengthening their role in general assembly and enabling their effective participation in the corporate governance process. The study has concluded that, when implemented fairly, corporate governance provides legal guarantees capable of protecting minorities and achieving internal balance within companies. It has also recommended that minority participation should be strengthened to ensure internal control and minimize institutionalized corruption.