No surprise there! While this case may be at the extreme end of the spectrum the current selection process for board members is inherently problematic. The Insiders - board and executives - basically select their own supervisors while the real members of the company in most cases rubberstamp the elections. And even then they are (poorly) represented by their fiduciaries, i.e. the investment institutions that manage their savings. Activist shareholders offer no solution either as their motives are highly conflicted and basically greed rather then the best interest of all stakeholders provides the main incentive. A wholesale revision of company laws it the only way out of this dead end. And please spare us the argument that 'free markets' must not be hampered and remember that corporate entities have been created by legislation.
Dish Suit Shows Close Ties Between Executive and Board Members (NY Times)
(12 July 2015)
Last week, NYSE Texas, Inc. filed a notice of proposed rule changes with
the SEC that would enable the trading of securities on the NYSE Texas in
tokenized...
2 hours ago
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