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2007-04-06 Home Front: Culture Wars

New York Times Shareholders Urged To Withhold Votes

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Posted by Glenmore 2007-04-06 08:01|| || Front Page|| [3 views since 2007-05-07] Top

#1 "Shareholders are left with few avenues through which to voice their opinion other than by withholding from Class A directors,"

What happened to class actions suits because of clear and irrational behavior by management against their inherit fiduciary responsibilities in a corporation subject to security and exchange laws? Toss in the SEC in the suit for its unwillingness to act [to take a page from the SCOTUS ruling the other day in the EPA suit].

Posted by Procopius2k 2007-04-06 08:54|| 2007-04-06 08:54|| Front Page Top

#2 Seems to me that public shareholders also have another option, one of the most venerated and time-tested ones: SELL.

Posted by Verlaine 2007-04-06 11:03|| 2007-04-06 11:03|| Front Page Top

#3 Verlaine,

It's a rather old dirty practice, that people with a controlling interest will do exactly what the management at NYT is doing to force people to sell their stocks cheap. There are preferred stock which has controlling interest and common stock which is along for the ride. To protect investors and keep integrity in the system is was the responsibility of the SEC to make sure that in open, traded stocks, the management not engage in such practices, that the management has a responsibility to the shareholders to make the corporation work. The SEC has the power to suspend trading in a stock because of malfeasance. While it would hurt the stockholders caught holding, those who were manipulating the corporation would also find their holdings frozen. Those holdings used for loans and other financial leverages by the troublemakers would be basically be worth zero until the mess was sorted out. Banks get nervous about those things. That's why its a tool in war and diplomacy. Hard paying taxes on your property in the Hamptons or Manhattan when the bank is closed.

Posted by Procopius2k 2007-04-06 11:22|| 2007-04-06 11:22|| Front Page Top

#4 Understood - all of the above. However, I'm a big believer in market solutions in these cases. Some institutional holders may want to avail themselves of remedies through the SEC or legal systems, but I'm just saying that selling the stock is the best step for most. I wouldn't put/keep my or other people's money in such an enterprise. If you want to move in, buy up a stake, and try to change things, a la some mutual or hedge funds, OK - but I think selling off the stock is an immediate and easy option that puts great pressure on the preferred holders (Pinch) and requires no regulatory rigamarole.

Posted by Verlaine 2007-04-06 13:59|| 2007-04-06 13:59|| Front Page Top

23:56 Mac
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