An elementary school classmate, now fmr President of the Company she founded is aghast over her non election as Board Member and ultimately as CEO. It was the company she founded. My wife joked that they did not request mentoring from me, or that did they really take up MBA as required by law if you are going to be head of such a health unit. Yes they did But they simply dined the professor so as not to make the study hard. This post did not fall for that. Yes I could see through that but they have to comply with academic standards. They had to study and work hard.
Now I researched why this happened It seemed that their adversary purchased a lot of common stocks and they became the majority. Their group had the majority and elected the board, and the board elected their President of choice.
Lessons:
1. The right of first refusal should be exercised to prevent loss of control majority;
2. The Pres should really have defended watched what was going on had security strictly observed;
3. May be they did not observe the protocol of some such unit that only founding shareholders to elect board, and other common as non voting They had a smart lawayer employed to devise such a strategy to oust my classmate.
Huhuhu. I idont know how she will ever get back to power. fIt will be a long legal battle to be fought in courts, not in the board room
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