Was Apple 'Adequate But Late' On Jobs?
Professor and co-Director of the Arthur and Toni Rembe Rock Center for Corporate Governance Joseph A. Grundfest is quoted in Business Week in a story about Steve Jobs' medical leave and how it will affect Apple stocks:
Joe Grundfest, co-director of the Arthur and Toni Rembe Rock Center for Corporate Governance at Stanford University, says securities lawyers could "get a good debate going" over whether Apple was as forthcoming as necessary. "Some will say this is good enough, and some will argue that we finally have disclosure and that it's adequate but late," Grundfest said.
Securities laws require that publicly traded companies disclose facts that are "material," but arguments rage over what constitutes material, Grundfest said. "Suppose Jobs were losing weight and it didn't interfere with doing his job, but he didn't know why he was losing weight," he says. "What's the board of directors to do? Say that the CEO is losing weight and it doesn't know why?"