Principal-agent relationship

Principal-agent relationship

Occurs when one person, an agent, acts on the behalf of another person, the principal.
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a) the power of attorney his wife executed in favor of his mother created a principal-agent relationship only between them;
The court went on to note: "[specifying the precise amount and form of director compensation in an equity compensation plan when it is submitted for stockholder approval 'ensure[s] integrity' in the underlying principal-agent relationship between stockholders and directors 'by making the directors suffer the ugly and enjoy the good that comes with a consistent, non-discretionary approach' to their compensation.
A principal-agent relationship may be formed by an express contract or it may be implied from the parties' course of conduct.
A principal-agent relationship arises when principal contracts with an agent to perform some tasks on behalf of the principal and these actions affect the welfare of both the principal and the agent (Petersen, 1993).
With regard to the fourth National Carbide factor, a principal-agent relationship must not merely be an attempt at an assignment of income.
The district court found that the evidence established the necessary principal-agent relationship between the Government of Iran and Pak's board of directors.
Complicating matters is the fact that some of the same courts that recognize the foregoing characteristics as defining a fiduciary relationship also have found fiduciary relationships may exist absent these elements and where there is just a principal-agent relationship.
Thus, no principal-agent relationship could have been formed under Florida law and the insured should not be able to maintain an action against the wholesale broker.
Rather, we focus on goal congruence, whether SOX effectively realigns the principal-agent relationship to improve the intrinsic value of the firm.
Remember, Downey says, that the lawyer-client relationship is both a fiduciary relationship and a principal-agent relationship in which the client is the principal and the lawyer the agent.
30) In the following section on organizational justice, we examine the dilemmas of administrative accountability and of conscience and the impact military voice has in the principal-agent relationship, and how this relationship can be related to an Error of the Third Kind.

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