On 10 Mar 2005 at 9:45, Daniel Wolf wrote:

> Noel Stoutenburg wrote:
> 
> > to which I would suggest a better option would be for the group of
> > power users to buy shares, and make a point of this at the
> > shareholder's meeting.
> 
> A point made at a shareholder's meeting by minority shareholders is
> usually ignored.  Been there, done that: the response from the
> majority shareholders is usually, you don't like the corporate policy,
> then sell your shares, we think the present policy will earn more
> money and selling your handful of shares will have no impact on share
> price.  A point made by commercial clients to the shareholders
> concerning a faulty product is much more likely to have an effect on
> corporate policy as it implies a direct result on the corporate sales
> results.

It's also a ridiculous risk, as you end up investing in a company in 
order to get them to change a policy that you consider to be bad for 
their customers. Since you already believe it's a bad long-term 
policy, you surely must think it's a bad investment, so you'd be 
risking a lot of money.

Keep in mind that the traditional definition of the constituencies of 
a corporate entity are the customers, the employees and the 
shareholders. Limiting your action to the shareholder side of things 
ignores the power of what *should* be the most powerful constituency 
of the three, the customers. An organized campaign by a group of 
professional engravers who use Finale and are vocal in the Finale 
community should carry much more weight than a handful of 
shareholders, unless those shareholders are rich enough to buy a 
large percentage of the company (10% or more).

-- 
David W. Fenton                        http://www.bway.net/~dfenton
David Fenton Associates                http://www.bway.net/~dfassoc

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