IT Group Holdings (fka ITGL)

[TechKim]

O.T.: UCOI: Conflict of duty and duty
A fiduciary's duty must not conflict with another fiduciary duty.[5] Conflicts between one fiduciary duty and another fiduciary duty arise most often when a lawyer or an agent, such as a real estate agent, represent more than one client, and the interests of those clients conflict. This usually occurs when a lawyer attempts to represent both the plaintiff and the defendant in the same matter, for example. The rule comes from the logical conclusion that a fiduciary cannot make the principal's interests a top priority if he has two principals and their interests are diametrically opposed; he must balance the interests, which is not acceptable to equity. Therefore, the conflict of duty and duty rule is really an extension of the conflict of interest and duty rules



It is my contention that the deliberate defaulting of convertible debentures at drastically unfavorable terms to the common class of shareholders indicates that the management of Unico had a relationship beyond arms length with the finance company. The subsequent failure to report the lawsuit settlements in a timely and responsible manner caused considerable financial distress to the holders of Unico stock. Shareholders were not forewarned of the manner in which the debentures were going to be settled and announcement of the settlements was delayed until absolutely necessary, the omission of this information is a glaring fiduciary breach, the relationship with the finance company a glaring conflict of duty.

This is at best "Financial irresponsibility"

Let the games begin