African Union Please give detailed explanations with supporting material where applicable. Objective 4: Ensuring that Organisations Treat Stakeholders Fairly and Equitably This objective focuses on the effectiveness of the laws and regulations that are in place to protect the interests of an organization‟s stakeholders. Stakeholders include shareholders, employees, customers, suppliers, creditors, the community, the future generation and any other person with an interest in the organization. Although there are mechanisms in place in many African countries to protect the interests of many of these stakeholders, these have not always been effective. Objective 5 on the other hand deals with activities by organizations that go beyond the law and make that organization a good corporate citizen. QUESTION 1 What are the mechanisms for Ensuring Equitable Treatment of Shareholders? INDICATORS (i) Describe the mechanisms for ensuring equitable treatment of shareholders Equitable treatment of shareholders means treating shareholders of the same class equally as well as ensuring that all shareholders have equal access to information and opportunities to exercise their rights as shareholders. (ii) Describe the rights of shareholders for the different types of companies. (iii) Describe mechanisms for protection of minority shareholders from controlling shareholder abuse, including a commentary on effectiveness of the redress mechanisms. (iv) Describe the measure that are in place to prevent market abuse (i.e. insider trading) (v) Describe any obstacles that prevent shareholders from effectively exercising their rights and measures being taken to eliminate the obstacles. (vi) Describe any sanctions against organizations or individual for non-compliance with the laws regulations, standards and codes mentioned in this section and provide evidence of enforcement QUESTION 2: What mechanisms exist to allow owners of organizations to maintain control of the organisations? INDICATORS 62