HOLD BY THE STOCKHOLDERS FOR CEO FRAUD
In San Francisco where there was ninth U.S. Circuit Court of appeals, it was recommended by the corporation that held it in a state of authority that will account for the mischief happening that may harm any third corporation that may be of no concern to serve the interest of corporate.
A corporation can be easily held by the stockholders who may get some harm or fraud by the chief executive. It is not important to get legalized with the company that may rule for the federal appeals.
By the shareholder of the ChinaCast, there is damage for the reinstating for the corporation of education that leads to millions of dollars swindle and got the hold to destroy the company. It has been addressed by the Ninth U.S. Circuit Court of Appeals in San Francisco that for the position of the executive by the corporation can lead to account for the damage it leads and for the other parties that are not responsible for any of the benefits.
There is promotion for the fair risk allocation that helps to close and check for the careful oversight of great ranking corporate officials and to check for the fraud. These important things were said by the Judge Margaret Mckeown in the ruling of 3-0
The long direction learning’s and teachings were sold by the ChinaCast along with the education for the multimedia, helped to post for more than 200 dollars million before it starts to decrease. The company’s founder and CEO known as Ron Chan Tze Ngon who was reported to do it of $120 million of the corporation assets was accounted to get the control by Chan and all the members in between June 2011 and April 2012
Stock was bought by the suit in 2011 and also in early 2012 who were dismissed by U.S. it was also said by the District Judge John Walter of Los Angeles that only the employers are intended for all the actions that are taking place that are for the normal course of the work and is not related with the interest and benefits for the employees. For the stockholder who is doing fair work does not belong under this circumstance that mainly depends on any of the authority that is of executive and act by the company name.
It was quoted by the CEO, Chan, “the one person on whom the board undoubtedly should have kept close tabs”. McKeown also added that there might be prevention for the closer oversight and for the value to share
There is a lawyer for the stockholder named as Marc Gross who said about the ruling of the kind of such issues on stock hold that the message must be conveyed directly to the court around the whole nation.
The company is generally run by the corporations who actually appoint the proper CEO for it. This was more emphasized by Gross along with this he also said that the investors are not allowed to hold it completely but not only with the bags. China Cast did not reply for such condition.
