More on Audit Engagement Letter Limitation of Liability Provisions
Today’s W$J has another article on limitation of liability provisions in auditor engagement letters (click here). This is a subject on which I’ve blogged before (see here and here). Because of the attention given the issue, it looks like more companies are disclosing in their proxy statements the existence of the provisions. I remain slightly ... More on Audit Engagement Letter Limitation of Liability Provisions
Interest on Tax Refunds
I worked on my tax return this weekend and will be getting a fairly sizable refund. I’m well aware that this means I have essentially made a tax free loan to the IRS, and it does bother me. But I guess it does not bother me enough to do anything about it in light of ... Interest on Tax Refunds
Survey on Majority Voting for the Election of Directors
As I’ve blogged before (here), a hot issue among shareholder activists this proxy season is majority voting for the election of directors. As mentioned in my previous post, a number of companies have taken a pre-emptive strike approach and voluntarily adopted modified plurality or majority voting standards in an effort to stave off the activists. ... Survey on Majority Voting for the Election of Directors
CBS v. Howard Stern
Today’s NYT has an article on CBS’s suit against Howard Stern for breach of contract (click here). According to the article: The lawsuit, which also names Sirius and Stern’s agent as defendants, claims Stern improperly used CBS radio’s air time to promote his new show with Sirius, which began last month. CBS also claims Stern ... CBS v. Howard Stern
Liquid Splenda
This morning I purchased one ounce of liquid Splenda at this website for $18.00 (including shipping and handling). Apparently the stuff is in such short supply that it is only available for purchase three days a month (today is one of the days). Before buying, I checked eBay and found this listing for a gallon ... Liquid Splenda
Can the SEC Exempt Small Companies from Sarbanes-Oxley 404? (Part 2)
Back on the first day of TOTM’s existence, I raised the question of whether the SEC has the authority to exempt small companies from SOX 404 compliance as proposed by the SEC Advisory Committee on Smaller Public Companies (see here). I stated that “[i]t’s not clear to me that [the SEC has] the legal authority ... Can the SEC Exempt Small Companies from Sarbanes-Oxley 404? (Part 2)
Decline of the Blogosphere
With the blogosphere in decline, we figure we have to either eat or be eaten. We prefer the former over the latter, so we’re mulling hostile takeover attempts of ideoblog, conglomerate and/or bainbridge. We’ve also implemented various anti-takeover defenses including a non-chewable deadhand poison pill and a ten-class staggered board.
Whisper Numbers
A “whisper number� once meant the consensus Wall Street unofficial and unpublished earnings-per-share forecast for a public company. Wall Street analysts historically derived a whisper number by ferreting out non-public information from company personnel. The number was then shared with top clients. Studies indicated that trading on whisper numbers could result in abnormal returns (see ... Whisper Numbers
H&R Block Botches Its Own Taxes
H&R Block, the leading U.S. tax preparer, announced today in this press release that it will restate results for fiscal 2004 and 2005. “The restatement pertains principally to errors in determining the company’s state effective income tax rate, resulting in a cumulative understatement of its state income tax liability of approximately $32 million as of ... H&R Block Botches Its Own Taxes
Hedge-Fund-Like Mutual Funds
A recent W$J article reports that a number of mutual funds have amended their fund investment policies to allow the funds to engage in hedge-fund-like investment strategies such as the use of derivatives, leverage and short-selling. I think this is a favorable development because it increases the types of investment options available to everyday investors. ... Hedge-Fund-Like Mutual Funds
Business Continuity Programs and Fiduciary Duties
This CFO.com article describes a new Deloitte & Touche/CPM Group survey on business continuity management programs. The survey finds that “[m]ore than 83 percent of companies have developed business continuity management programs, compared with only 30 percent of companies just six years ago.� Deloitte and CPM attribute the increase to the fact “that executive management ... Business Continuity Programs and Fiduciary Duties
Buy-Out Prices in Nose Bleed Territory
According to this FT article, Stephen Schwarzman, the head of the buy-out firm Blackstone (a firm that will soon close on a record $13.5 billion buy-out fund), warned that prices being paid in buy-outs are in “nose bleed territory� and that “seeds of excess� are being sown. As Schwarzman put it: “[W]hen it ends, it ... Buy-Out Prices in Nose Bleed Territory
