CNN - "Disney Ignores Shareholders"

[WDWHound]

Here is a link to a CNN article titled "Disney Ignores Shareholders". It basically states that Disney has decided to use seperate accounting firms for consulting and audits. Apparaently, the stockholders voted against this.

http://money.cnn.com/2002/02/19/companies/disney/

I don't understand. I am not normally a Micheal Eisner fan, but this actually seems like a good idea. Why are the stockholders against it?

 

[larworth]

This was put on the proxy statement by shareholders, not by the company. The proxies were prepared before the Enron debacle came to light.

In the proxy statement Disney recommended you vote against this proposal. Very few shareholder proposals ever get adopted, and this is another case where people voted the company line. The company can go ahead and do this regardless of the vote. They have the discretion, it is just not been made mandatory.

It was a good thing Eisner step forward early and got on the bandwagon, but it was not really his idea.

 

[Disnsyncey]

yeah, I'm lost too....my accounting teacher has been telling us about his accounting business and also in the process of learning accounting, its better to use 2 different accountants to do that, because if the auditors make a mistake and they're doing the consulting too, they might not find the mistake......or maybe the other way around...but yeah