1. European Aeronautic Defence and Space Company (EADS) is unable to arrive at consensus because of internationally polarized management and shareholding.
2. Instead, the shareholders were allowed to decide themselves on what should happen with the meagre earnings. By a majority vote it was decided they should be distributed.
Should the mob ever rule? It is such an expensive proposition
[EADS leadership contingents are now mutually paralyzing each other to the detriment of the company:
1. It was unable to increase capital stock in order to cover the rising financial costs associated with the new A350 long-haul airliner.
2. It was unable to convince shareholders to renounce their dividend payments due to the delayed production of the A380 superjumbo.
3. It was unable to agree to establish a convertible loan
4. It gave former Airbus CEO Noël Foergard $11.3 million when he resigned about a year ago - despite the billion-euro debacle over the delays in the production of the superjumbo A380.
5. Its two main shareholders DaimlerChrysler and Lagardère want to withdraw from the aviation industry in the medium term and are therefore not particularly enthusiastic about investing more money in the company.]
[Click here for full story at: BUSINESSWEEK.COM]
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