The queasy ‘Enron feeling’ that directors must never ignore | Financial Times

VEA Vice Chair Nell Minow is quoted in an article looking back on the 20th anniversary of the collapse of Enron.

“Unquestionably, boards are sharper, more independent, more focused, and more engaged,” says Nell Minow, vice chair of ValueEdge Advisors and a longstanding critic of poor governance and campaigner for shareholder rights. Still, since 2001, the message of the Enron affair about compliance and good governance “may have lost its sizzle”, lawyer Michael Peregrine and governance professor Charles Elson have warned in a post for Harvard Law School. The pendulum risks swinging back towards over-mighty executives. Minow likens regulatory attempts to improve governance to a race between safe-makers and safe-crackers: “Each time you make a better safe, they come up with better tools.”

The queasy ‘Enron feeling’ that directors must never ignore | Financial Times

One Comment Add yours

  1. Douglas Walker says:

    Thank you for all you do. Can you provide some direction to me? I listen to Nell Minow on CNBC and witnessed a very competent professional.
    I have a public company 116.1M common shares outstanding per 10K and Q3 2021 Audit by a top 200 CPA firm per AICPA. The company is controlled by Mass Mutual, Barings own 19.3M 17% and Fortress/EJF Capital 31.3M and their co investors that control the Board of this public company 40M. I and a small count of private investors own 30M shares. This totals 120.6M shares held plus per 10K 2020 page 7 their are 696 Shareholders of Record not including those inside Street Names.
    My analysis shows the Board of Directors have withheld material information in SEC filings so as to suppress the share price while they allocate 50M of their 71M shares held at pennies (not including Mass Mutual and sub Barings position). The Board has engineered temporarily a low share price while at same time converting partial Board Compensation into 18M RSU and given their co investors Fortress and EJF Capital 31.3M shares at less then one penny. They accomplish this by failing to share their past relationship and by failing to disclose the same investors Fortress and EJF Capital hidden behind CDOs own 31.3M 27% and at same time the companies only Sr Debt to exit Ch 11. These CDOs paid almost nothing for CDO Service Rights same year their co investors joined the Board.
    I have written the Board and their Co Investors many times to be completely ignored. I have written the CPA firm PIC Boulay Group to be ignored. I have filed a complaint at PCAOB to be ignored and I have written the OTCMarkets, FINRA and SEC to be receive no action.
    Would you have any direction or advice?
    Doug Walker 781 237 1199


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