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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 88.98+11.8%3:59 PM EST
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To: Rampex who wrote (14305)2/25/2006 2:50:49 PM
From: Wes  Read Replies (1) of 14451
 
"There's no case law to settle the matter, so companies continue to forgive loans to their executives...."

So, let's also post that part of the article showing the "matter" not settled:

Corporate reform law Sarbanes-Oxley made new loans by a company to its executives illegal. But loans made before the law went into effect July 30, 2002, were allowed to stand. The existing loan agreements cannot be modified in a "material" way, even if the modification benefits the company.

Does forgiving a loan entirely count as a material modification? That "is and has been an open and debatable issue, one of the things lawyers scratch their heads about," said Bryn Vaaler, a partner in the corporate group of the Minneapolis office of the law firm Dorsey & Whitney LLP.

Now, the "Pratt" loan is a "matter" to bring up at the shareholder meeting March 23, 2006.
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