# kaal:claim:1998455-034

**Claim.** Management incentives for risk control are heightened upon conversion, especially where management knows that holders of converted contingent capital would command a majority vote, with or without institutional shareholders.

**Type.** mechanism  **Support.** argued

**Holds when.**

- depends on the volume of CCS issuance, which determines the influence of CCS holders

**Source quote.**

> More importantly, management incen- tives for risk control could be heightened upon conversion, espe- cially if management knows that CCS holders would have a ma- jority vote upon conversion (with or without institutional shareholders).

**From.** Wulf A. Kaal, *Initial Reflections on the Possible Application of Contingent Capital in Corporate Governance* (2012), VII.C. Increased Voting Rights, page 47

**Cite as.** Wulf A. Kaal, Initial Reflections on the Possible Application of Contingent Capital in Corporate Governance (2012). SSRN: https://ssrn.com/abstract=1998455

**Verify.** sha256 of source PDF `1c16ff10a284469ba15fb7ba5523449b917388ee692d9b394f9e8c094544e32c` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202012%20-%20Initial%20Reflections%20on%20the%20Possible%20Application%20of%20Contingent%20Capital%20in%20Corporate%20Governance.pdf

**Topics.** risk-and-incentives, governance-design, contingent-capital, corporate-governance

**Keywords.** risk-control, voting-rights, management-accountability, contingent-capital, corporate-governance

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/2061166-021
- extends: https://wulfkaal.github.io/claims/1908473-025

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.