Ackman's Argumentative Essay

466 Words1 Page

1) Q: Shareholders are generally perceived as being very “passive” in nature. Briefly explain what this refers to. Shareholders as owners of a share of stocks in corporation, are granted special rights based on their classes of stock. They are not involved in day to day management. In addition, they are not liable for the debts of a corporations, and the benefit of them is delegated and governed by the board of directors. Therefore, they are generally perceived as being very passive.
2) Q: Ackman’s behavior is certainly anything but passive. Do you believe his actions were justified? Why or why not? I believe Ackman’s actions were justified. This is because the intentions of the actions taken were “changes to the underperforming railway”, which was “understandably defensive”. His tried to benefit the corporation by proposed for re-election when he believed the former CEO was unable to lead Canadian Pacific Railway Ltd to expected success. Also, Ackman did not take any irrational actions, he had a plan and worked out well finally. Ackman was trying to protect his and the corporations’ benefit. Therefore, His actions were reasonable and justified.
3) If you were a CP shareholder would you vote in …show more content…

Firstly, Ackman was a shareholder, not one of the board of directors, considering his unprofessionalism compare to the board of directors. I would be unable to give him full trust that his plan would work. In addition, since the corporation did not support this proposal and even chastise Ackman, I would rather believe in the corporation, which was more authoritative. Moreover, Ackman ‘s proposal “including hiring a chief executive who had just retired from its closest rival”, this would be difficult for we shareholders to understand, and be worried if the new CEO could do his job with previous enmity disregarded. Therefore, I would not vote in favour of Ackman proposal as one of CP

More about Ackman's Argumentative Essay

Open Document