Comments on: TTAC Called It: Lutz Admits “Bankruptcy” is BOD’s Voldemort

By: John Horner

John Horner — Mon, 27 Oct 2008 22:27:51 +0000

“The Board of Directors represents the shareholders”

Only in theory, but not in practice.

The Chairman of the Board of GM is the man who drove Eastman Kodak off the cliff for heavens sake! Now he has presided over the destruction of TWO iconic American companies.

Shareholders don’t even get a say in who is on the slate of candidates for a board. The notion that a board represents the public shareholders is a convenient fiction, and everyone inside the higher levels of corporate America knows it.

By: jkross22

jkross22 — Mon, 27 Oct 2008 21:27:17 +0000

Perhaps the board is talking about bankruptcy, and for all the right reasons, have not looped in Senor Lutz.

By: toxicroach

toxicroach — Mon, 27 Oct 2008 20:51:12 +0000

Well the shareholders are ultimately and not so distantly concerned with GM as the car making entity. Bankruptcy isn’t a magical thing; you can be bankrupt without declaring bankruptcy (GM is pretty much there).

By: no_slushbox

no_slushbox — Mon, 27 Oct 2008 20:13:52 +0000

The Board of Directors represents the shareholders, and Bankruptcy is not good for them, even if it is Chapter 11.

However, for GM as a carmaking entity Bankruptcy is the best choice.

Given GM’s financial situation I have to agree with dean that the Board is grossly negligent if they are not secretly discussing the best strategy for protecting shareholder equity under Chapter 11 reorganization.

If GM goes chapter 11 they may have some amazing cars in five years, if they are bailed out by the government they may not have any cars in five years.

By: autonut

autonut — Mon, 27 Oct 2008 20:08:51 +0000

@willman: within UN (NYC) there is no need for such discussions. Clothing available in boutiques and big name dept stores at beyond inflation prices, for hookers they can/need call former NY governor (he does/did the best), they all park illegally and smack is still available in most night clubs.

By: willman

willman — Mon, 27 Oct 2008 19:45:04 +0000

@autonut: Probably the same things UN Ambassadors talk about all day. How best to obstruct traffic in cities, ruin available parking, park most illegally, misappropriate funds through nepotism and embezzlement, spend thousands of dollars on lunch, clothes, and hookers; -etc. …

By: Cmiller

Cmiller — Mon, 27 Oct 2008 19:41:10 +0000

Maybe they fire up a projector, and navigate to thetruthaboutcars.com and make fun of Bob and all the silly things he does.

Bob: “Oh crap, I was drunk when I said that.”
Exec #1: “Dude! That interview was at 8am!”
Bob: “You’re right, I don’t drink that early… I must have been on crack.”

Exec #2: “This damn site has documented every single thing we’ve done wrong… why don’t they have an article on what we should do right?”

Exec #3: [Starts handing out cups of Cool-aid]

By: autonut

autonut — Mon, 27 Oct 2008 19:18:00 +0000

I wonder what they DO talk about during board meetings? Absurd compensation for non-performance? Brand disintegration? Inability to design & build cars that public inclined to buy? Remedies for all of the above? Flomax? Vaigra? I would love to be a fly on a wall.

By: dean

dean — Mon, 27 Oct 2008 19:08:44 +0000

If it is true that the board has never even talked about it, then they are in breach of their fiduciary duty to the company and should be sued.

Somebody on the board needs to shut Lutz up.