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Company Directors Shame File

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Garpal Gumnut

Garpal Gumnut

Ross Island Hotel
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I'm not a funnymentalist so don't know my chairman from my chair, but I do note that some company directors preside over many companies which share a common attribute, poor performance.

It beggars belief that these people can continue to get directorships.

Perhaps as with brokers, tipsheet writers and finance journalists, the hardest thing about the job is getting it.

Once you are in, no matter what a dill you are, the other directorships keep on coming. Its rather like ants passing the message on in a trail towards the sugar.

Perhaps ASIC need to look at performance rather than qualifications or desire.

gg


www.nicholsoncartoons.com.au
 

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The new chairwoman of BNB also chaired VCR and GPT and a couple others and crickey.com has set up a 'black widow' performance tracker, as every board she is involved with falls by 50% at least.

Also CDR which went into receivership recently...
 

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What does a company look for when choosing who to approach to ask to become a director on their company board?

Networking contacts? Industry knowledge? Access to capital?

Or more cynical reasons like repaying a favour?

Kenny
 
Kenny,
it is a bit off all those,

I guess it depends at what stage the company is at, a start up will have a different broad make up to that of a blue chip.
 
This next one is Elderslie, heaps of people ripped off, poor corporate governance and directors previously convicted of company ripoffs allowed to start a new company.
Some recurring names in the shame file.
Two excerpts from the article in the Australian today.



IN 1994, Peter Alexis George bought a little-known but long-established Perth-based financier Elderslie Finance Corporation for "between $2 million and $3 million".

In a highly successful marketing campaign -- which reached its zenith during the past four years -- the Sydney businessman enticed thousands of "mum and dad" investors to park their funds in Elderslie.

The size of the company ballooned, in line with the broader financial markets, and by early last month, when Elderslie was placed in administration, the company had raised a massive $200 million.

What many of those investors did not know -- and were not told by the corporate regulator -- was that Mr George had previously been a director of a separate company that was accused of stealing millions of dollars from investors.

Mr George was a director of EC Consolidated Capital from July 1992 (four months after it was founded) until it collapsed in 1997 amid concerns from the corporate watchdog about $33 million of "missing" superannuation funds.

Most of that money has ever been recovered.

....................................

PwC receiver Greg Hall told The Australian those loans to Mr George's companies were "substantially irrecoverable" and the fact that Elderslie's board members -- including Dr Hewson -- had approved those loans was "clearly a significant issue".

Dr Hewson, a self-proclaimed "international expert in corporate governance", declined to comment yesterday.

The former Liberal leader was appointed as Elderslie chairman in November 2006 and has previously said he adhered to the "highest standards" of corporate governance at all times.

He has previously told The Australian he was appointed as chairman of Elderslie in November 2006 to help find a buyer for the company.

Elderslie's trustee Perpetual Trustee Company is currently suing Mr George and fellow Elderslie director Andrew Vaughan in the NSW Supreme Court, alleging they misappropriated "trust monies".

Mr George has said he and Mr Vaughan would fight the claims, which they strenuously denied.

Speaking on a mobile telephone on Tuesday, Mr George said all his dealings with Elderslie had been entirely appropriate.






Read the full article at

http://www.theaustralian.news.com.au/story/0,25197,24258100-20501,00.html



gg
 
Well, I hope Dr Hewson refrains from appearing on any more TV slots as the financial expert of the day.
 
There certainly are some names where I make a point of ignoring the company and not investing if they are on the board, and others where you would follow tham and put a few bob in anything they are involved in - so sometimes the name is worth a lot of money to a company.

Often, a directorship isn't an all consuming job, which enables them to cover more companies.

Names I like to see:
Ted Ellyard,
Paul Fry
Andrew Childs
Kerry Harmanis
and many more......
 
Julia said:
Well, I hope Dr Hewson refrains from appearing on any more TV slots as the financial expert of the day.
Click to expand...

I agree Julia, he is on Lateline as I write.

How does he manage to attract the attention of the ABC broadcasters, its not as if he shares any of their values, or does he?

gg
 
Im thinking we may have to throw David Cooper and Terry Streeter in this thread. As directors of a little known nickel exploration company (Western Areas Exploration WAE) a nickel tenemant came to their attention and they steered the potential nickel deal away from the company and into the float of the unrelated Western Areas NL (WSA). Streeter and Cooper have done everything they can to settle the matter in private mediation. Sounds dodgy to me, the matter is on its way to trial
 
wildkactus said:
Kenny,
it is a bit off all those,

I guess it depends at what stage the company is at, a start up will have a different broad make up to that of a blue chip.
Click to expand...

That's what I figured, wildkactus. Some of the problems that directors get companies into may be the natural reluctance of people to give up their post when it becomes obvious they no longer have the necessary skills to perform the task. What may be critical in a startup may not be as useful as other skills in a larger multinational or as the company ramps up to production etc.

Regards,

Kenny
 
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