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Technology Stocks : Compaq
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To: The Duke of URL© who wrote (96591)3/28/2002 1:46:53 PM
From: Night Writer  Read Replies (1) of 97611
 
A corporation who feels favorably disposed to deal with certain shareholders, if they would get the best deal for their shareholders is acting as legal as a shareholder who wants to prevent a merger because it will make him a little fish in a big pond.

Let me run this hypothetical by you as a business ethics examination question.

According to the corporate bylaws the poll is almost closed. I know the voting results and it appears I have lost by a slim margin. I have people calling large shareholders to try and change their minds. They are getting nowhere. I have the bright idea to use financial leverage on one large shareholder, but time is running out. I delay closing the poll for fifteen minutes to give it a shot. I tell the shareholder I'm not going to do any more big dollar business with them unless they vote my way. They change their vote, and I win.

Does the CEO have the right to delay closing the polls?

Is using financial leverage to have a large shareholder change his vote legal?

As an officer of the company, did I properly represent the shareholders interest?

Could this financial leverage be legal, but also be considered unethical?

What is the line between financial leverage and financial blackmail?

Do I have any obligation to disclose my actions?
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