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Rames

04/05/11 11:45 AM

#77626 RE: Traderfan #77625

My point is that the majority owner of a company agrees to accept make good arrangements with investors, where - if he doesn't meet those targets - he risks giving away more of his company, eventually losing the majority and control. Why would he do that if he is the big head honcho who can make sure that those investors will get the numbers he wants them to see? Even for an honest chairman, there is a massive incentive to at least use "creative accounting" to make sure the targets are met.