Subscribe to this topicForums > SLCapEx Suggestions > Topic: Bubacks/Delistment Rules
| Jul 27th 2008, 10:22 Scott Nestler |
Bubacks/Delistment Rules | |
| I would like to suggest that some simple rules be put into place for Buybacks and delistment and what ever else is going to effect a company. For example, the current MNM situation. I would suggest that the Board of Directors of a company listed in CapEx must vote and approve any measure that will change a companies listed status. the L&L companies recent delistment and the current MNM situation was done without the approval of the BOD and in the RL that would never happen. CEO's serve at the pleasure of the Board and the Chairman of the Board is supposed to represent the board. Putting a posting in place in CapEx for known BOD members to reply to for public voting is easy enough. What is the worst thing that happens? The CEO/Chairman of the company goes missing and those assets are given to the next elected person? CapEx survived Sully's disaperance and the shareholders in POW surrvived. Any comments? |
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| Jul 27th 2008, 12:24 SynCere Talon |
Re: Bubacks/Delistment Rules | |
| A posting for Board Only would be a good idea I think. Boards are suppose to meet every month (RL), why not set up a post only topic for companies. Then every month after the financials are released the COB can post a summary. Might go along way in boosting moral and confidence. Also would be a good place to post any major company changes, issues that stockholders would need to vote on ect.. | ||
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| Jul 27th 2008, 17:18 Konner McDonnell |
Re: Bubacks/Delistment Rules
Edited by author Jul 27th 2008, 17:19 |
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| From a roleplay perspective, it's a decent idea. But here's the critical problem if you are trying to grant the BOD rights commensurate with their RL counterparts: They'd have responsibilities that could not be backed up by legal mandate or remedy. "What is the worst thing that happens? The CEO/Chairman of the company goes missing and those assets are given to the next elected person?" The worst that can happen is the BOD absolves the CEO of all responsibilities through firing the individual while making a decision that is reducible to 'hoping' the CEO will honor the BOD's decision. You cannot seize assets outside of CAPEX. In effect, you'd be adding a new complication with the same limitation: Hoping the CEO honors their committments. BODs in virtual finance are nothing more a bunch of overglorified advisors with an opinion and vote that may or may not be recognized by the CEO in their decision-making process. Defying the rules would certainly get the company halted and maybe delisted, and if there were any company assets in their CAPEX account, those might be seized, but it would likely be a fraction of the company's total assets unless it was an investment company utilizing only SLCAPEX or governed by some inter-exchange arrangement. The latter will never happen across the board. From an RP scenario - decent idea. But where introducing real rights and remedies to a BOD, much less shareholders, that would give rise to a substantial change to current trends? You may need to finesse it a bit. |
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