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Protecting minority investors: Going beyond related-party transactions
Author: Doing Business
Publication: Doing Business 2015
Overview

  • Doing Business introduces 3 new measures of minority investor protections this year—indices on shareholders’ rights and role in major corporate decisions, on governance structure and on corporate transparency.
  • Economies with the most developed securities markets tend to have the highest average scores on the 3 new indices.
  • On average, OECD high-income economies offer the strongest protections as measured by the new indices and continue to provide the strongest protections as measured by the existing ones.
  • Among 189 economies worldwide, India follows the largest share of the good practices measured by the new indices.
  • On average, shareholders of listed companies are more protected than those of nonlisted companies.
  • Overall, minority investors are more protected in economies that distinguish between shareholders of listed companies and shareholders of nonlisted ones.