SHAREHOLDER DEMOCRACY VIS-À-VIS SHAREHOLDER PARTICIPATION

Abstract

Shareholder democracy represents a broad concept which, among other things, includes the position of shareholders in the process of company management and operation, as well as the instruments and rights through which such influence is exercised. Specifically, the position of shareholders in joint-stock companies is directly determined by the relationship of the management bodies on the one hand, and the level of participation and interest, that is, the participatory role of shareholders in the process of management and operation on the other hand. The subject of this research is an analysis of the position and role of shareholders in the process of company operation and management, viewed through the prism of the level of their participation. In this context, the aim of the research is to examine the position of minority shareholders within a broader social context, as a factor influencing the character of corporate awareness in Macedonian society. The basic hypothesis underlying this research is that the concept of corporate governance in joint-stock companies has altered the conception of the position of shareholders in such companies and, consequently, the character of shareholder democracy. However, regardless of the way the management of joint-stock companies is defined, the challenges faced by management bodies and shareholders are essentially twofold. In this regard, the analysis has shown that the level of shareholder participation, or rather shareholder passivity, represents one of the greatest weaknesses in the process of building democratic processes within the framework of the company’s internal relations. Through the normative-legal method, the legal acts regulating this issue are analyzed to assess the legal framework governing the relationships between shareholders and management bodies within the company. Through the teleological method, which serves to analyze objectives and functions, the realization of these objectives and functions within the system of corporate governance of companies in the Republic of North Macedonia is examined.