Replies to post #69516 on e.Digital Corporation (fka EDIG)

[wsidejack]

Shareholder Dissatisfaction

Well, there are various ways to show dissatisfaction (while still remaining a shareholder, if one so chooses). In no particular order:

First, vote against the existing board when the next election comes up. In an extreme case, a dissident group could challenge the incumbents in the next board election in the hope of unseating them. Prime candidates would be major shareholders who live in California.

Second, complain to the existing board in writing about the situation to date and continuing management problems.

Third, when the time comes that they go to the shareholders for approval of an increase in the number of shares authorized, vote "no". Or make it clear (best time is now) through communication to the board that you will vote "no" unless the company greatly reduces waste beforehand by terminating unproductive employees, such as in sales.

Parenthetically, I have often wondered if the frequently cited "loyalty" of the shareholders is the company's greatest asset or management's greatest asset. Meaning if management has their own self-interest at heart rather than that of the shareholders/firm they may have conciously been playing shareholders like a fiddle all these years because they thought they could.

"Oh, they'll believe what we tell them, so tell them about a billion dollar OEM lurking around the next corner to keep the lid on at the next SHM."

Then do it again and again and again.

If stockholders keep approving all management proposals and re-electing the same people, what pressure is there for them to change?

Time to stop fiddling around.

wsj