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Czech archetype of a corporate crook. ?. He manages other people’s money. What sort of bad things can he do?. X. Y. Z. Viktor’s choice. MANAGE THE COMPANY WELL AND HONESTLY. MANAGE THE COMPANY BADLY BUT HONESTLY. STEAL FROM THE COMPANY/SHAREHOLDERS.
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Czech archetype of a corporate crook ? He manages other people’s money.What sort of bad things can he do?
X Y Z Viktor’s choice MANAGE THE COMPANY WELL AND HONESTLY MANAGE THE COMPANY BADLY BUT HONESTLY STEAL FROM THE COMPANY/SHAREHOLDERS Theoretically achievable value of a company
How to tame the bad guy? STEALING FROM THE COMPANY/SHAREHOLDERS Legal Rules • No stealing • Duty of loyalty • Corporate opportunity • Duty of care • Civil Liability • Criminal Liability MANAGING THE COMPANY BADLY Corporate Governance • Board composition • Independent directors • Board committees • Code of ethics • Disclosure • Audit • Takeover threat • Loss of job