Post Script to Shareholders Can Also Vote

On August 7, 2009, a day infamous because of Hiroshima, I wrote the above-noted Blog.

A week later there appeared an article in the National Post which agreed with me in that there needs to be a way found to keep the Board of Directors and the Officers of Companies at arms length.

The Post article suggested that Boards of Directors be filled by "professional board members" and I like their idea. I had suggested that officers should not be allowed to own shares in the company and that they should not take part in the Board nomination process. However, anything that will result in an arms length approach I support. Without such, the public is doomed to further abuses of corporate power.

I feel somewhat comforted by this article and hence this post script.

But it also provides an opportunity to reiterate that the Free Market did not let the world down in regard to the recent financial collapse; rather it was the greed and lack of values possessed by those in a position of trust - (read the Madoffs of this world).

We were also let down by the lack of government oversight which should have ensured a level and honest playing field to protect investors / shareholders and beyond that the general public many of whom are now unemployed.

Capitalism has no soul nor feelings, it simply provides a cold and calculating way of doing business. Competition is encouraged and the best survive. And that is the way it should be.

The GMs and Nortels failed on their own and should not be propped up by government. Bombardier falls into that category as well.

The recent announcement, by the Liberal Government of Ontario, to subsidize GM's Chevy Volt to the tune of $10,000 per vehicle is a case in point. Where is the fairness in this, to Ford, Toyota and the others all of which have factories in our country and pay the same taxes and so do their workers. It distorts the process and in the end, results in inferior products being developed by the subsidized company since they are no longer subject to free market constraints. It brought down communism and will bring down GM (again) if this favoured approached continues.

Government has an important role to play in capitalism. It sets the rules for all. For instance, if emission standards are imposed, all manufacturers should be subject to those standards and the free market system will ensure that thsoe standards are met in the most cost effective manner. The public then will decide on best quality.

Those that suggest Capitalism has taken it on the chin are sorely mistaken. It has worked well for us and will continue to do so, if allowed.

More on this later...

"Galagher"