PUBLIC DIRECTORS MERIT A TRY

WITH EXPOSURE OF COMPANY MISCONDUCT AND WORK-RELATED HAZARDS TO EMPLOYEES, THE TIME MAY BE APPROACHING WHEN OUTSIDE EXPERTS ARE CHOSEN BY THE COURTS TO ENSURE A COMPANY'S ATTENTION TO INFRACTIONS. THIS THIRD PARTY, A LIMITED PUBLIC DIRECTOR, SHOULD BE UTILIZED ONLY UNDER CONDITIONS OF DEMONSTRA...

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Veröffentlicht in:Harvard business review 1976-03, Vol.54 (2), p.20-42
1. Verfasser: Stone, Christopher P
Format: Magazinearticle
Sprache:eng
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Zusammenfassung:WITH EXPOSURE OF COMPANY MISCONDUCT AND WORK-RELATED HAZARDS TO EMPLOYEES, THE TIME MAY BE APPROACHING WHEN OUTSIDE EXPERTS ARE CHOSEN BY THE COURTS TO ENSURE A COMPANY'S ATTENTION TO INFRACTIONS. THIS THIRD PARTY, A LIMITED PUBLIC DIRECTOR, SHOULD BE UTILIZED ONLY UNDER CONDITIONS OF DEMONSTRATED DELINQUENCY AND GENERIC INDUSTRY PROBLEMS. INSTALLATION OF SUCH A PERSON ON A BOARD-OF-DIRECTORS COULD BE ACCOMPLISHED VIA COURT APPOINTMENT, OR THROUGH A SHAREHOLDERS DERIVATIVE ACTION. ONCE INSTALLED, THE FUNCTIONS OF THE LIMITED PUBLIC DIRECTOR WOULD HAVE TO BE DEVELOPED SO THAT HIS ACTUAL VOTE WAS NOT BEING COUNTED ON. HE SHOULD SERVE MORE OF A SUPER EGO FUNCTION. TO INSURE LAW COMPLIANCE, THE DIRECTOR AND HIS STAFF SHOULD UNDERTAKE LEGAL AUDITS, SERVE WITH THE COMPANY ON A FULL TIME BASIS, HIRE THEIR OWN STAFFS, INSPECT ALL CORPORATE BOOKS, BE SEATED ON ALL CORPORATE COMMITTEES.
ISSN:0017-8012