Sunday, December 14, 2014

Class Action and stopping the endless drip, drip of corporate fraud

A very good article by lawyer Katherine Dandy  on Class Actions in Pension Insight. I have added this comment to the on-line site.

"You make a lot of sense Katherine. There is also a wider governance point that trustees should consider.

It is not only a duty for them to recover such losses if possible but also as owners we have a responsibly to "punish" directors and companies who undertake fraud or such negligent behaviour in order to improve overall corporate governance standards.

Most class action claims are also settled by insurers so it should not necessarily damage a company you still have shares in.  More class actions will also increase pressure on insurance companies to insist on better governance standards to reduce their risk.

Directors who behave in such ways should be held personally liable. Next to more effective criminal regulatory powers this is the best way to stop the seemingly never ending drip, drip of corporate fraud and negligence cases.

(it seems that Pension Insight  haven't published my comment? So I have just tried again).
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