It seems that companies go for an IPO and get listed in a very big way. Hire the big time gurus at humongous fees to get it done, offer shares to all their key shareholders and management, place out some for the public as per exchange requirements, the share price goes up, everybody is happy, some cash out, some keep the shares.
But in recent times, especially after the financial crisis and economic downturn, there are also cases of companies which have been forced to seek a delisting because they no longer meet the listing requirements. In some more sinister cases, the main shareholders or management disappear, some assets are missing. Again, the big time advisers are hired, they do whatever they need to do, the company delists, some of whom without making an exit offer to their shareholders, and those minority shareholders who did not manage to get out in time, really lppl.
Do you think that the exhange and these financial advisers can do more to help the minority shareholders? What can they do? Or what preventive action can they take?
The independent directors were supposedly appointed to protect the interests of the minority shareholders right? Should they have to explain why they didn't anticipate or pick up on the troubles faced by the delisting company? Should they have to explain clearly what they did or did not do, while the company was still active, and not only after it is forced to delist? To protect the minority shareholders?
But in recent times, especially after the financial crisis and economic downturn, there are also cases of companies which have been forced to seek a delisting because they no longer meet the listing requirements. In some more sinister cases, the main shareholders or management disappear, some assets are missing. Again, the big time advisers are hired, they do whatever they need to do, the company delists, some of whom without making an exit offer to their shareholders, and those minority shareholders who did not manage to get out in time, really lppl.
Do you think that the exhange and these financial advisers can do more to help the minority shareholders? What can they do? Or what preventive action can they take?
The independent directors were supposedly appointed to protect the interests of the minority shareholders right? Should they have to explain why they didn't anticipate or pick up on the troubles faced by the delisting company? Should they have to explain clearly what they did or did not do, while the company was still active, and not only after it is forced to delist? To protect the minority shareholders?
