Checklist on Dubious Action by Directors

Some signs of poor directorship include:

  • Directors who work to downgrade the value of a company so that they are able to buy shares at a lower price and then work hard to bring the company back up to its true, profitable position so that they can sell for a high profit.

  • Directors who grant lucrative management contracts to themselves with the company.

  • Directors who are major shareholders in the company and they primarily are interested in watching over their own personal investments.

  • Directors who are share brokers and use their client base to influence the company’s share price.

  • Directors who award themselves incentives and other allowances on top of their remuneration without any thought to the cost of those incentives to the company.

  • Directors who act in any way to “feather their own nest” and do not have regard for the interest of the shareholders of the company.

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