atans1

Waz the point?

In Corporate governance on 18/12/2009 at 7:13 am

So the court has ordered the executive directors of Sino-Environment Technology Group to call for an EGM to remove the EDs (bit like asking piglets to vote for Chinese New Year) from the company’s board.

As the public only has 43% of the vote, presumably the EDs and their connections control the balance. What if the EDs use these shares to block their removal? They have their rights too.

Possible moral of the story: be very careful in investing when the EDs and their connections have more than 51% of the votes.

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