The directors do not necessarily have much greater risk as other shareholders.
They may have larger positions than most other shareholders, and therefore greater exposure to BVA's operating environment, but as executive directors they are in a position to exercise management control over all shareholders' funds.
This is one of the greatest risks to which passive, minority shareholders' funds are exposed - ie the ability or inability of current directors to act in the best interests of all shareholders as co-owners, not only to serve their own interests (or primarily their own interests) at the expense of others.
Don't forget also that a significant portion of their holdings were financed externally, and in doing so they placed their holdings, and consequently the holdings of others, at far greater risk. It may be legal for them to finance their holdings through margin lending or other arrangements, but simply agreeing to disclose this to the market doesn't make it smart or responsible management.
It is a primary responsibility of the board and management to protect shareholders' interests, and the BVA board and management have failed shareholders in this instance, as have other boards and managements that have allowed their shareholders to be unnecessarily exposed to substantial addition risks as a result of their directors' stock ownership and financing arrangements.
BVA Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
