RE:RE:RE:RE:Shareholders are being held Up I'm not suggesting this is what fnc mgmt, directors, and "consultants" are up to. But theoretically, the signs to look for with nefarious plundering of corporate assets and the treasury are of 3 types. This is the result of the inconvenience and cost of only holding a minority interest and not just taking fnc private. Rather than share proportionately, in theory, there are other options. Secrecy and non disclosure make it much simpler. As does regulatory ineptitude and dereliction of duty
In Theory:
1) they could bleed the treasury with expensive employment contracts that include not just generous salaries. Sky's the limit on other goodies like options, rsu, "profit sharing", loans whether recourse or non recourse, non arms length generous office rentals, etc etc. This is time consuming if there is a large treasury and a small insider group.
2) Sweetheart deals to sell "non core" assets, or hidden jewels. A sub category here includes letting claims lapse that require minimal spending to maintain in good standing. "Friendly" parties or even insiders can scoop up assets for bargains at the expense of shareholders.
3) sweetheart deals going the other way with "friendly", conflicted, or brazen insiders. The treasury can be raided by exchanging valuable fnc property, assets, or more simply.....cash for very overvalued shares or assets. Again from "friendlies" , insiders, "consultants", conflicted parties. If there is an activist shareholder or two impeding your access to the trough by rallying shareholder votes to oust you, you can even use the shareholders own assets to buy the votes you need to thwart any resistance . Such cruel irony.
Both versions of the "sweetheart" deals are a quick, efficient, way to transfer the wealth of company "x" to the very few, at the expense of the very many.
In Theory.