Monday, 25 January 2010

The ultimate "NO" vote

Ultimately, the company exists for the shareholders.  The directors are there to represent the shareholders' interests.  These directors are not employees of the company.  They make strategic decisions, and they keep tabs on what the managements are doing.

Any time you decide you don't like the management, its policies, or the direction the company is headed, you are always free to exercise the ultimate "no" vote and sell your shares.

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