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adelphia case - fallout The board didn’t act in favor of...

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Lauren Brockmiller Dr. Barr BUS 101 1/28/11 Adelphia Case The owners in this case are mostly the Rigas family. There are a few other shareholders, but since the Rigas had most of the voting power, they would be considered a pretty powerful owner. Since the Rigas family is the owners of the company in both senses of the word, their interest is to make money for the company so they get more money. The primary responsibility of the board of directors is to oversee that decisions being made are in the best interest of all stockholders. Including employees and even the stockholders with smaller voting power, because together they have a lot of voting power. Although in this case, even if you got all stockholders against the Rigas, they would lose because they owned over half the company. I think that since most of the board was made mostly of the Rigas family, the board did act in their favor. The Audit committee over looked important aspects that caused the company’s
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Unformatted text preview: fallout. The board didn’t act in favor of all stakeholders, but in favor of the most influential ones. I think that if the owners had acted appropriately, they would have covered up these “mistakes” better. The other owners, the smaller shareholders, acted appropriately by suing the crap out of the Rigas family. The Government got involved by running an audit and by using their SEC rights to do an investigation on Adelphia. This kept everything legal. Other than that, the government helped sue the owners that had made the mistakes. The Sarbannes-Oxley act would have helped in that the Rigas that was on the audit committee couldn’t have helped the family get away with what it did. It keeps the whole “conflict of interest” thing to a minimum. Basically, if this would have been in place, it wouldn’t have happened....
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adelphia case - fallout The board didn’t act in favor of...

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