#parasite, #asset stripping, #private equity,
The Parasites of Western Economy, Part 5: Company Asset Strippers and Conspirators.
A company operates to generate profits to be distributed to its shareholders. Unfortunately, the sheeplike shareholders have allowedtheir own dividend incomes to be reduced over long periods. This injustice is spotted by PE that moved in and took away the unjustly accumulated assets.
Generations of shareholders lost the assets owned but hidden from them. They blamed the PE but the it was really their managementwho set up the scene.
1.Steps leading to an Asset Stripping.
1. Company directors pay themselves and their associates extravagant fees and bonuses at the expense of shareholder dividends.
2. Company accountants receiving directions from their bosses and hides real situations from shareholders.
3. Dividend payouts are kept small under the guise of“retaining for future expansion”,so that directors payments can be made…
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