See the attachement and decide which question you are familiar with Essay

See the attachement and decide which question you are familiar with - Essay Example As stated by Lord Sainsbury, Parliamentary Under-Secretary of State at DTI, the purpose of the Act is to â€Å"to constantly update company law in response to changes in the way companies do business†1. According to Lord Sainsbury, the Act has four key objectives: It cannot be gainsaid that minority shareholders occupy a vulnerable and precarious position in the hierarchy of the corporate structure. The dilemma that of how one is to go about preserving their rights and granting them protections is akin to the dilemma that faces a democratic polity: while the will of the majority is a foremost consideration and indeed is the most equitable way to resolve disputes and frame policies, there is an equally compelling and equally valid need to have regard for the interests of those in the minority – marginalized sectors who face constant threat of being disenfranchised in a system founded on justice and fairness. The part of the Act that is most relevant to shareholder engagement is Part 11, which provides shareholders with, as stated in paragraph 480 of the Explanatory Notes, â€Å"a new procedure for bringing such an action which set down criteria for the court distilled from the Foss v Harbottle jurisprudence". 2 The Act essentially expands the existing derivative action, and allows shareholders to sue the directors for a wider range of breaches, namely in respect of an actual or proposed act or omission involving negligence, default, breach of duty or breach of trust. Another significant change is that a shareholder who has brought proceedings must apply to court for permission to continue the claim. The following criteria must be followed by the court in considering whether or not refuse permission are as follows: The Act also contains restrictive provisions on the issue of ratification by the majority. Members who are personally interested in the

The inverse relationship between price and quantity demanded of a Essay

The inverse relationship between price and quantity demanded of a commodity - Essay Example This implies that as the price of a commodity increases, the quantity demanded for that product would reduce, similarly as the price decreases, the quantity demanded for that commodity would increase. Behravesh (2008) describes the inverse relationship between price and quantity demanded is a constant law in economics. There seem to be no real exception to the inverse relationship between price and quantity demanded as long as it is a commodity that consumers crave to get, this law would always hold its ground. The quantity demanded for a particular commodity depends on the price. The quantity demanded would begin to decrease when the suppliers or manufacturers decide to increase the price of the commodity. Consumers would begin to look for substitutes to these commodities that have a lower price and these means that the quantity demanded for a commodity that its price has just been decreased would begin to reduce drastically. The reason for the inverse relationship that exists betwe en price and quantity demanded is not far-fetched. There is always a price that consumers are willing to pay for a particular commodity and when there is a change in this price, they begin to change their mind. Some consumers may even look for other alternatives and this would affect the general quantity demanded for that commodity. ... ists between the price of a commodity and the quantity demanded is seen below: Quantity Demanded Price 600 100 300 200 150 400 75 800 40 1500 The effect that the increase in the price of a particular commodity would have on the quantity commodity is clearly shown above as an increase in the price would drive the quantity demanded downwards. However, there are exceptions to this law of demand as there are some commodities that the price of a commodity does not affect the quantity demanded for the same commodity. Drugs seem to be an essential commodity for sick people that the price of this commodity does not really affect the quantity demanded for that commodity. Consider a drug that has proven to be the most potent solution to a particular ailment and the price suddenly goes up. A patient that loves his or her life would pay anything to get that drug. Thus, an increase in the case of potent drugs would not in any way affect the quantity demanded for that drug. Hence, there are some e xceptions to the inverse relationship between price and the quantity demanded for a commodity as there are some commodities that some consumers can pay through the nose to get (Jones 2008, pp. 23-26). Another thing to consider is the income of consumers. The quantity demanded for a particular commodity may reduce and the price of that commodity may still remain constant. In this case, would we say that there is an inverse relationship between price and quantity demanded? The answer is no. the quantity demanded reduced due to the reduction in the income of the consumer as consumers would only buy what they can afford as they cannot in any way spend beyond their financial limits (O'Sullivan, Sheffrin, & Perez, 2010). Hence, this represents a somewhat exception in the law of demand’s inverse