Related Party Transactions -
Sibir Energy
The revelation
that the major shareholder of Sibir Energy owes the company $325 Mio. and not $115
Mio. as
stated in recent announcements is a crass example of the problem presented by
related-party transactions in public companies.
We support that all related party transactions should be brought under the
regulatory umbrella and be disclosed in a timely fashion. While legislation
and regulation to this effect has been taken to a more or less satisfactory
extent in many developed countries we think that more
should be done.
It would be helpful to make it mandatory to publish full details before any
transaction takes place and demand that deals are subject to approval by all
shareholders. Shareholders - even if not controlling shareholders - that are
beneficiaries of proposed transactions should not be allowed to vote on deals
they are involved in.
20-Feb-09
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Our Mission
Our Mission is to
campaign for the protection of investors and savers by promoting
good corporate governance.
We also believe that the wider spread of share ownership is in
itself a public good and may sometimes even be preferable to higher
economic efficiency.
"The scandal
isn't what's illegal; it's what's legal"
(Michael Kinsley)
Executive
Compensation
Which part of a company's staff should benefit from bonus
schemes and perks?
Cont'd...
Governance
Can
differentiated voting rights be justified?
Cont'd...
Merger Regulation
On whose side is the Takeover Panel?
Cont'd...
Pensions
Simplified Pension System would also solve the problem of skyrocketing Public Sector Pension costs.
Cont'd...
Private Equity
Does 'Private' Equity benefit at expanse of Public Shareholders?
Cont'd...
Wider Share Ownership
Does the Tax Code promote Wider Share Ownership?
Cont'd...
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