Another Stronach article

[Sundown]

http://www.canadianbusiness.com/managing/strategy/article.jsp?content=20060116_73830_73830

This one primarily goes into his involvement with helping hurricane Katrina victims, but also gives background on Stronach and Magna.

[garyoz]

Great coverage of the corporate governance issues and Frankie treating shareholder assets as if they were his own wealth.

[kenwoodallpromos]

That was a hit piece with no numbers given of expenses, what % of Magna Stronach owns, or how much taxes Magna saved by utilizing the empty dorm for charity. The artice was more negative adjective than objective!
In Northern Ca 11+ months of the year most county fair tracks and grounds sit almost empty but not too many homeless or Katrina victims are housed in those areas. I applaud Stronach for this!

[garyoz]

He & related interests own the majority of a supervoting class stock, not the majority of shares in a company. I think it is great that you're happy about how he spends money that belongs to his shareholders. IMHO, the article wasn't a hit piece, it was about the fiduciary responsibility (or lack thereof) of a corporate officer.

[kenwoodallpromos]

"He also challenged other business leaders to join the "Canadaville" cause by donating funds or services. More than 50 project partners, ranging from Air Canada and Indigo Books to IBM and Sharp Electronics, stepped up to the plate."
Maybe this does not fit Canada's socialist agenda? Maybe the author/his mag wants stockholders to rely on Govt welfare?

[Sundown]

I'm not sure how this all works, but wouldn't shareholders be aware of the voting procedures regarding the stock before they invest?

Also, what is a "hit piece"?:blush:

[garyoz]

I'm not sure how this all works, but wouldn't shareholders be aware of the voting procedures regarding the stock before they invest?

Also, what is a "hit piece"?:blush:

Regarding company's with two-tiered stocks, the answer is yes if you do a modicum of due diligence (like read the 10-K or annual report) investors are aware of the super majority stock problem. Often these stocks trade at a discount to their "fair value" or less than peer companies. For example Cablevision Systems (cvc) has two classes of stock, one of which has 10 (or maybe more) votes per share (if my memory serves me right). The class of stock with more votes per share is owned by the insiders.

A hit piece refers to an article written by a journalist who has an agenda to damage the reputation of the subject of the article. A hit piece will fall short of slander, but is written in a way to make the subject look bad.