Conflict of Interests of Company Stakeholders and Its Strategies

Companies as a powerful economic entity have many stakeholders. The optimal situation of the company is the time that the stakeholders, interests are balanced and the welfare of all of them is achieved, but different factors such as the stakeholders’ risk-taking and self-interest prevent this equilibrium and create a conflict of interests. The conflicts may arise between the stakeholders of one group or between the stakeholders of different groups, and cause many problems like agency costs, distrust to company entity and inability to absorb the minority wealth.
This study relies on the library research findings and up-to-dated statistical data. The legal and economic analyses are the base of this paper.
The results imply that the Company Law tries to reduce the agency costs by giving supervision regulation and control tools to the stakeholders. Furthermore, it supports some stakeholders by granting right to the minority shareholders in several articles, and finally, includes all of the stakeholders under its support by setting out mandatory regulations; however, some of these provisions have not past efficiency in accordance with the circumstances of this decade.