MEMBERS
MAKING THE NEWS - AUGUST 2002 NEWSFLASH
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This summer has been a continuation of “wake up calls” and “shake ups” in Corporate America. Just when many Americans were starting to feel more at peace with the international challenges facing us daily, our corporate leaders opened another can of financial uncertainties. As the heat of the summer sizzles away, I think that the end of the third quarter will be more fruitful if people remember the core value of their investing and building long term. This month’s newsletter is filled with some thought provoking insights shared with us from some of our members. We look forward to seeing you at our next forum. Please continue to have a safe and joyous summer Warmest Regards, Ssusan Forte O'Neill |
MEMBERS ON THE MOVE
Kimberly Covey, formerly of Stanislawski & Harrison, has joined the entrepreneurial ranks and opened her own Accountancy Practice. Congratulations Kim!!!!!! You may contact Kim at: Kimberly C. Covey Certified Public Accountant 301 North Lake Avenue, Suite 800, Pasadena California 91101-4108 p: 626.584.6157 • f: 626.584.6159 • e-mail: kim@kimberlycovey.com |
CULVER
CITY EMBARKS ON A COMPUTER AUTOMATION PROJECT
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TECHNOLINK ASSOCIATION • MEMBERS MAKING
THE NEWS Insights from Dorothy Pavloff, California Technology Ventures….
Current headlines have been commenting on the role of corporate
governance in public companies. I believe it is important
to note that corporate governance guidelines apply to private
venture backed companies as well. As a venture capitalist,
my objective is to work with a start-up to shape the company
for an eventual sale to a public company or an IPO. Since
our goal is to exit an investment through the public markets,
we work with management to adopt corporate governance best
practices in the early stages of a company’s formation.
For instance, when a company forms a board of directors, an
audit committee and a compensation committee are appointed.
These committees typically consist of non-management board
members to promote independent opinions. The audit committee’s
role is to promote effective financial reporting by working
directly with the company’s outside auditors in reviewing
financial results and accounting procedures used by the company.
The purpose of the compensation committee is to monitor and
benchmark management compensation and to make recommendations
regarding stock option plans. If these committees are effective,
many of the problems that are currently eroding investor trust
can be avoided. Corporate governance effects all company stakeholders
and best practices can increase the company’s overall
value. For more information on this topic please contact Dorothy
Pavloff at 626.403.6632 or Dorothy@ctventures.com. |
There
will no doubt be many legal consequences for shareholders and
CEO's alike in the aftermath of the accounting scandals of Enron,
Global Crossing, Worldcom and others. However, the impact on
the legal system itself will be significant as well. The sheer
size of the litigation matters, which will result from this
corporate fallout, will inevitably require the expanded use
of what is known as the multi-district litigation system ("MDL").
Under the MDL rules, cases, which have been filed in different
districts and involve one or more common questions of fact may
be transferred to any one district for coordinated or consolidated
pretrial proceedings. The obvious purpose of the MDL system
is to encourage judicial efficiency and to eliminate the possibility
of conflicting rulings in more than one district court on a
similar issue. MDL procedures are typically used when there
are numerous lawsuits filed as a result of a single incident
or series of events. Lawsuits against corporations brought by
multiple plaintiffs concerning similar issues of alleged accounting
fraud seem particularly well suited for the MDL system. |
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