From: Michael Lorrey (mike@lorrey.com)
Date: Mon Dec 14 1998 - 12:35:54 MST
Samael wrote:
> -----Original Message-----
> From: Michael Lorrey <mike@lorrey.com>
>
> >Since a shareholder, when not prevented by the government, has the right to
> >examine all corporate documents, then current technology allows for
> software
> >driven complete due diligence if all company records are digitized (which
> can
> >easily be made a standard by PPA polices). Granted that it was much easier
> in the
> >past for a corporation to hide things, but this is no longer the case.
>
> What makes you think that when a corporation is freed from its constraints
> it won't stop people accessing it's records? Or covering them up?
PPL involves interlocking insurance arrangements and arbitration precedents,
much as in civil and common law. In order for a corporation to be insured, it
must agree to the policies of the PPA they are insured with. A corporation which
engages in stock fraud rapidly loses value, and the officers of the corporation
engaging in the fraud can have civil action taken against them by the corporate
PPA, as well as the PPA of an independent stockholder association, and the PPA
of the employee union. Given such interlocking agreements, it becomes standard
practice in any corporation wishing to maximize stock value to open corporate
records to stockholders for due diligence purposes. If a corporate officer
engages in liable actions in contradition to stated corporate policy, they
become individually liable, and are not sheilded even by current day limited
liability corporate legal practices.
Mike Lorrey
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