Conflict between Shareholders and Creditors: A Critical Analysis

Abstract

Within a company there are many groups of actors, as for example, majority shareholders, minority shareholders, management,
employees and creditors. These groups all have various interests in a corporation‟s cash flow, and these interests inevitably come into
conflict. This paper is based on one of these conflicts, the conflict between shareholders and creditors. The origin of the shareholder–
creditor conflict arises as a consequence of the fact that shareholders in corporations are not held personally responsible for the debts of
the company. This paper aimed at to examine the unveiled problems between the shareholders and creditors to find out the arena of the
shareholders and creditors role in corporate governance in Bangladesh as well as to provide the possible way out to minimize the unveiled inadequacies between them. Also this paper is mainly based on the laws and regulations of the European Union because of
the more modern and sophisticated in comparison to our domestic laws are, for upbringing with the standard limit and for suggesting
the workable solutions.