Ruthless Gullivers and helpless Lilliputs

Governance issues in different categories of companies
Governance failures and abuses happen across all three categories — public sector, family promoters and MNCs. Whoever the dominant shareholder is, minority shareholders are exposed to certain risks, and the higher the dominant shareholder's stake, crossing the various voting thresholds of 26%, 50% and 75%, the bigger the risks. Above 75% performance very clearly deteriorates in most, but not all, cases, says Espirito Santo Securities.