Yes, the Shareholders Can Fight Back
Article Abstract:
Farmer Brothers Co. stockholders are attempting to challenge the control of the coffee distributor's reincorporation and majority stock ownership through a variety of lawsuits and voting actions. Chairman Roy F. Farmer, the founder's son who controls 53.9% of stock, wants the company to reincorporate in Delaware which is more favorable to corporate management. Franklin Mutual Advisers, a 9.6% shareholder, opposes this move so as to be able to protect public stockholders. Another lawsuit by members of the Crowe family, who are trust beneficiaries, challenges Mr. Farmer's control of their shares. A third lawsuit wants to determine if the 70% of Farmer. Bros. assets in cash and short-term investments make it an unregistered investment company instead of a coffee business.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 2003
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Who's Watching Your Fund Manager?
Article Abstract:
New York State Atty. Gen. Eliot Spitzer's recent revelation of unethical, if not illegal, practices at a variety of mutual companies has shed light on part of the financial services industry that may not be doing all it is required or should do to protect shareholders and investors. One problem rests with boards of directors' members who have too many responsibilities and do not have the time to review potential conflicts of interest. Directors' extravagant financial compensation may influence their decisions at board meetings and allow conflict of interest situations to skew their concern for investors' financial protection.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 2003
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S.E.C. Finding Fund Abuses, Official Says
Article Abstract:
The SEC is investigating mutual fund industry practices that favor large corporate investors over individuals and allow market timing trades, after-hours trading and other financially advantageous transactions that benefit corporate investors and earn substantial commissions for securities dealers. Putnam Investments had already fired four fund managers for unethical trades that enhanced their commissions and catered to privately-favored investors. Putnam has agreed to pay back to th e funds money that the managers earned improperly.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 2003
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Comment about this article or add new information about this topic:
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