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...ith a late-stage bridge loan prior to the company’s sale. That financing insured them a larger return at the expense of employees he maintains. The venture capitalists in these allegations call them “baseless.” they claim to have acted ethically, legally and in the company’s best interests of a struggling company and common shareholders, many of whom made money and kept their jobs. In some cases the venture capitalists are left holding the short end of the stick. From a corporate view there has to be a mechanism to ensure protection, most likely relying on independent, outside directors. Under new corporate governance requirements mandated by last year’s sweeping Sarbanes-Oxley securities reform legislation, companies intended to go public must have boards with independent directors. I think that it is good that companies have to rely on outside directors, that way there is less fraud, and scamming ...