Company is made up of people with a pool of talent who all work for some project in
order to get an effective result for the company . Every company has its own rules and
regulations for achieving certain target .
The agency problem is a conflict of interest inherent in any relationship where one
party is expected to act in another's best interests. In corporate governance, the agency
problem usually refers to a conflict of interest between a company's management and
the company's stockholders. The concept of corporate governance has been a priority
on the policy agenda in developed market economies for over a decade especially
among very large firms.
The agency problem arises in a situation where an agent (i.e. a director of a company)
does not act in the best interests of a principal (i.e. a shareholder). Conflicts Between
Managers and Shareholders. Agency costs mainly occur when ownership is separated,
or when managers have objectives other than shareholder value maximization.It can
overcome the agency problem in your business by requiring full transparency, placing
restrictions on the agent's capabilities, and tying compensation structure to the wellbeing of the principal. The possible agency conflict between inside owner/managers
and the outside shareholders is the consumption or the indulgence in perks. One
particularly famous example of the agency problem is that of Enron. Enron's directors
had a legal obligation to protect and promote investor interests but had few other
incentives to do so.
The conflict which was arised in between from the share holders and the
management of the company has different aspect and in different
manner. This is altogether with the matter of money which was indulged in
between these group to sort out the issues which are faced by the firm
management and the shareholders.
Share holders
It means who has to invest the money into the company for the benefit for
both the company and himself. Share holders can be one of the important
pillars of the organisation who can invest into the company for the
beneficial for both the companies and himself itself. There is much criteria
for the shareholders to invest into the company. They can evaluate the each
and every aspect which are related to the company and done the the through
examination which are pertaining to the company before investing.
Board of Directors
It is the group of people who was elected by the norms of the company to
manage and guide and to taken care about the best decisions which are
related to the company and taken care about the interest of the share holders
and other related parties of the companies and taken the apt decision making
which are in accordance with the interest of the company.
The Function of Board of Directors are given below:

Board of directors can protect the interest of the share holders

To implement the dividend policies which are suitable for the
companies for the interest of the share holders or investors

Main responsibilities are to protect the interest of the subordinate and
support with their daily activities which are related to companies
beneficial.

Main responsibilities includes to setting up the actual targets or goals
which are essential for the company for the long run.
Board of directors has the authority to decide the dividend policies of the
companies which are very much interested by the share holders / investors
who can keenly interested on the same. The main conflict which are a...
The organizational conflict is an irreconcilable situation inborn in any
relationship where one gathering is relied upon to act to another's greatest
advantage. Incorporating money, the organization issue, as a rule, refers to
an irreconcilable circumstance between an organization's administration and
its investors. The director, going about as the specialist for the investors, or
chiefs, should settle on choices that will augment investor abundance even
though it is in the administrator's wellbeing to expand his own riches.
Explanation:
The organizational conflict arises because of an issue with motivators and
the presence of watchfulness in task finishing. A specialist might be
persuaded to act in a way that isn't good for the specialist's head if given the
motivation to act along these lines. For instance, in the pipes model, the
handyman may get threefold the amount of cash flow by suggesting a help
the specialist needn't bother with. A motivation (multiple times the
compensation) is available, making the office issue emerge. They
incorporate the expenses of any failures that may emerge from utilizing a
specialist to take on an undertaking, alongside the expenses related to
dealing with the head specialist relationship and settling contrasting needs.
Conclusion:
Therefore, it is beyond the realm of imagination to expect to dispense with
the organization issue; managers can find ways to limit the danger of office
costs.