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Uncategorized > WSJ: Governance guru Robert A.G. Monks blames investors for crisis (but both he and WSJ miss that irresponsible, ineffective shareholders is a consequence of limited liability and "public co" regulation)
WSJ: Governance guru Robert A.G. Monks blames investors for crisis (but both he and WSJ miss that irresponsible, ineffective shareholders is a consequence of limited liability and "public co" regulation)
I ran across the following at the NACD Directorship website: (emphasis added)
Robert Monks recently told the International Corporate Governance Conference that the losses shareholders incurred during the economic crisis prove investors must be more assertive in exerting their ownership over corporations.
September 14, 2011
The
Wall Street Journal quotes corporate governance guru
Robert Monks, who spoke at the International Corporate Governance Conference in Paris on Tuesday. He
stated that unacceptably large losses incurred during the economic meltdown are proof that shareholders must exert their ownership over corporations more assertively. In a speech, he remarked, “
The inability and unwillingness of institutional investors effectively to monitor and require accountability of management is one of the principal causes of the continuing financial crisis.” Monks is the founder of corporate governance firm Institutional Shareholder Services and is co-founder of The Corporate Library. He concluded that
in an increasingly multinational corporate world, shareholders are the “best enforcers of corporate governance rules since they are not limited by national boundaries.”
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