Does an agency conflict exist between csi's cfo and the company's shareholders

No, the agency conflict does not exist between CSI’s, CFO and the company’s shareholders.  

Further Explanation:  

Agency conflict:

Agency conflict means the motives of the company secretary (CS), chief financial officer (CFO) and the company’s shareholders are different. Then the conflict arises, as the company secretary (CS) and chief financial officer (CFO) takes a decision in favor of them. The shareholder and other parties' motives do not match with the decision.  

Agency conflict may arise when the officer takes the decision only for the shareholder profit. The decision may affect the other parties like bondholders, customers, and suppliers. Here, the agency conflict arises which can be resolved by taking the decision in favor of all parties.

The chief financial officer manages the accounts of the company. The company secretary manages the law of the company that the company follows the law.  

There is no agency conflict between the CSI’s and CFO and the company shareholder. As the CSI’s and CFO gets the bonus when the shareholder is satisfied. The main motive of a shareholder is to get more amount of dividends. if the shareholder is satisfied, the CS and CFO get a high bonus. That’s why there is no agency conflict.  

Learn more:

1. Learn more about the ethical dilemma

2. Learn more about bankruptcy

3. Learn more about depreciation expenses

Answer details:

Grade: Middle School

Subject: Law

Chapter: Agency conflict

Keywords: Agency conflict, company secretary, chief financial officer, shareholder, motive, bondholder, customer, suppliers, satisfied, decision, resolved, high bouns and dividends.  

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