Swami

Satyam Fraud Raises Tough Questions About Owning Stock

The biggest problem I have with owning stocks is that stakeholders who are supposed to guard the interests of shareholders dont seem to have the drive to do so. In SAY's case, instituations have 60% of shares and promoter 8%. Why didnt the insitutions insist on returning the huge cash on the books back to shareholders if management didnt have any useful purpose for it. No wonder Raju thought he could do anything with it. Independent board directors are a big fraud. They say they have very little time to spend understanding the day to day working and yet like to be seen with the responsibility on overseeing the management independently. They are hardly independent, they are working for the management. This is like a democracy in which intelligent people dont bother to vote and then blame the system for producing criminals.