July 26, 2010
If not less than 75% of the control is exercised by a single person or group, either directly or indirectly through one or more entities or affiliates, the company will be run almost as a proprietary concern with public shareholders not capable of bargaining anything or stopping anything. Governance would not improve by mere regulatory requirements relating to independent directors! Because without any contravention of regulations, the institution of independent directors could be reduced into a farce. As a result the public shareholders do not really find any utility of their VOTING POWER; more so in the case of illiquid stocks. Therefore if level of capital market activity, track record profits, track of dividend, capital appreciation on the basis of market cap do not show dynamism and such a negative trend continues for not less than 6 months, there must be regulator appointed nominee from a panel who shall be liable to MONITOR the corporate management decisions and actions so as to protect the interests of the public shareholders who are obviously a scattered lot.
SPICE UP; LET THEM WAKE UP!
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