"HK" wrote in message
m...
Eisboch wrote:


"HK" wrote in message
m...


Since the taxpayers basically own GM, the chief representative of the
taxpayers should be able to tell GM's CEO that it is over. That
company, and many other corporations, need fresh blood capable of
leading their companies in new directions.



This is going to be interesting in terms of how it is handled.
I am not questioning the request for Wagner to step down, but I am
interested in how his replacement is selected.

To my knowledge (I might be wrong) the bailout money received to date
was not given in exchange for stock in GM. Basically the government
money is subordinated debt, just like a bank loan.
There's no voting rights associated with it.

"Requesting" him to step down is probably a condition for additional
bailout money.
That's perfectly legal. But for the White House (Obama) to install a
new CEO without a vote from the GM Board of Directors (and possibly a
shareholder's meeting and vote, if he is also on the board) might
present some interesting legal issues.

We'll have to see what happens.

Eisboch


We have to get away from the idea that these damned boards of directors
are competent. Absent evidence, I think they are not. And we have to chop
up huge companies whose failures can kill our economy. Hugeness is not
serving the public's interest.

Incompetent Board or not, if this isn't handled correctly, the threatened
lawsuits against the government they were worried about with the AIG bonus
guys will pale in comparison to the lawsuits brought by GM stockholders.
*They* own the company, not the government or the taxpayers.

Chapter 11 is the vehicle (pun intended) to cleanly restructure the company.

Eisboch