Posted on 06/23/2010 9:19:12 AM PDT by Kaslin
I dunno. Did Chrysler shareholders still have rights? GM shareholders? Republican Chrysler dealers? Evidently not.
Yes, the BP shareholders have rights. They can call a shareholder meeting and vote to remove the current leadership if they don’t like their decisions. The new leadership could then go to court claiming the old leadership failed their fiduciary duty in turning over money to an independent body without any legal benefit.
Certainly the people of The Gulf Coast deserve just compensation for lost wages, business, etc., but the amount should be determined by law, not by 0bamao. Also, if BP wishes to declare a dividend, it is not for 0bamao or his regime to say they cannot.
Pretty much the same tactics as Acorn uses... and organized labor as well. Cooperate or else.
Reminds me of when Paulson (under Bush) demanded that banks take TARP funds to hide the failing ones from investors. Did shareholders in those banks have any rights then?
Did Republicans even care about Paulson doing this?? Many here were upset about this but many others here to this day say it was OK for Paulson to force the banks because it saved the economy.
TARP was a curse. Now in Washington we have emergencies everyday of the year.
Good point - not to mention the bondholders. Obama’s actions on those bankruptcies are certainly leading other potential lenders to be less willing to invest.
There very well should be a shareholders lawsuit come of this. IMO, management has not upheld their fiduciary responsibility. Not saying the victims should not be compensated, but just writing checks is not the way to do it. There will be no end to that line.
I hope some BP shareholders file a suit against Hayward and the directors of BP for breach of fiduciary duty.
Corporate assets may properly be used to pay people with bona fide claims against the corporation.
But handing over a huge sum of corporate assets to Obama and his political apparatus, outside of the legal system, with no control or accounting by BP to ascertain that only bona fide claims are paid, in essence providing a giant slush fund for Obama, could well be found to be a breach of the fiduciary duty owed by the officers and directors of BP to their shareholders.
So, BP could argue that it believed that to give in to Obama's illegal actions was necessary to save the company more money and grief from the US government, and perhaps for PR reasons, and if it does, its actions would come under the business judgment rule.
What needs to happen is for the new supposed conservative Prime Minister of Britain to step in and say that this extra-judicial punishment of BP cannot stand, and fight it diplomatically and economically. He has enough power to stand up to Obama for BP, and he can threaten punitive actions against American companies, perhaps in the North Sea or elsewhere. He could say that he has no problem with BP being subject to US laws, but he will not stand idly by while BP is subjected to dictatorial action. In that way, he would be protecting all those British pensioners who are seeing their life savings go down the drain.
Will he do it? I doubt it. The British are probably still too concerned with following the US lead. They have not shifted, yet, to the realization that Obama is not their ally. We still are, but the US under Obama is not.
“Americans believed in — and lived by — the rule of law.”
Adams was right. Americans do believe in the rule of law. This is what comes of electing a president who is not a natural born citizen (and who has been so cagey about his past that it’s reasonable to wonder whether he is even a citizen).
One of the best tests of Legislation or the actions of our own team, is whether we could support it if Obama or other Democrats were pushing the effort.
The second great test is how would we like it if the worst of the Democrats were going to be able to use this legislation to their own ends later on.
But then our leaders don’t even bother to read the legislation they vote for these days.
I wish you were correct, but he did the same with Chrysler bondholders at the very beginning. He took away their money and gave it to the unions.
Regardless of how much I may like a car, I will not buy it from the Detroit unions that now own it --- the very source of Detroit's demise even prior to Obama's action --- for as long as I live.
“Do BP Shareholders Have Rights?”
No.
The precedent was established when Bam-Bam took away GM and Chrysler stockholders’ rights.
BP could have said, “No. See you in court,” but they didn’t. They agreed to pony up the funds and if anything Obama did them a favor. They’re on the hook for billions in damages anyway. They know that. By setting up an escrow fund and letting Obama’s hand-picked designee run it then BP is off the hook. Any delay in payments, any shortage of help, any bottleneck in the claims being processed is the fault of the Obama administration. BP can say, rightly, “We did the responsible thing and made the money available. It’s the other guys who screwed up getting the money to those who need it.”
In Fall 2008 during the debate it was obvious to me as well as liberals like Maxine Waters that Obama would get to spend the TARP money in 2009.
But many fools here believed Bush that TARP would save the economy and McCain would win the election as a result of saving TARP. Of course when that didnt happen they changed their dictionaries from ‘saving the country’ to ‘destroying the country’ trying to fit the MSNBC model of Republicans.
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