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How firms can better engage shareholders

Each and every director must only be concerned with the best interests of the organisation. They all strive to add value as best as they can with that one unified objective, and none among them is more or less important or influential.

So where does engagement with directors who represent shareholders come in? Why must they be singled out for special attention? It is because their principals, as Roger Hitchcock of the Sirdar Group expressed it to me in the context of private companies, are “legitimately selfish” in their objective of seeing some combination of dividends and growth. Yet when these directors enter the boardroom they are obliged to become, like any other director, “legally selfless”.

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