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I hadn't intended to write about Sirius XM so soon after last week's column, but the satellite radio company's financial woes were sending me a clear signal -- one uninterrupted by tunnels, mountains, sunspots and more than US$3 billion in debt. I mentioned Sirius XM last week in reference to Congress' vote to delay the digital TV transition to June; another example of government laying its heavy hands on a hyped technological breakthrough that encountered problems upon arrival for consumers.
Following the recent headlines regarding Ergens proposed bid for SIRIXM some time last year my question to Mel is why weren't the shareholders notified? If Ergen proposed for one of his units to provide capital to SIRIXM to meet the debt obligations for 2009 and beyond why wasn't this communicated to the common stock holder? By definition a common stock represents ownership in a corporation, it provides voting rights. Each common stockholder receives a vote to elect a board member, these board members are supposedly the shareholders representative (what a joke). Stock holders can also vote on company objectives in the form of voting rights. A voting right allows the common stock holder to vote on matters of corporate policy. Doesn't corporate policy change once a bid is made on a company? The current strategy implemented by the board must now be reconsidered and the common stock holder should be notified and given the opportunity to collect the new data and decide the future direction of the company. Shouldn't the common stock holders have been notified of Mr. Ergens proposed bid? Where is the corporate governance? Its nonexistent....SIRIXM's board is no better than the banking sectors boards. It should be the decision of the stockholders whether SIRIXM should be involved in a consolidation with Echostar Corp or Dish Network Corp. Mel where was the stockholders notification of Mr. Ergens proposed bid last year? I was under the impression that I was an owner of the company.....Oh, SIRIXM forgot to send out the letter explaining that they already took your money during the IPO and have run the company into the ground(not one company but two). Your money is no longer needed and neither is your ownership..... SIRIXM will issue new shares once bankruptcy is completed and a new IPO will be pushed to the public in which you and I will be able to donate additional money to a corporate governance structure that simply does not value the common stockholder. email@example.com/voicedup.blogspot.com