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Home-Based Business Fast Facts, Last Updated:09/05/2010 Venture capitalists usually expect to be able to assignpersonnel to key management positions and also to obtain one ormore seats on the company's board of directors. This is to putpeople in place, a phrase that has sometimes quite unfortunateimplications as it was used in many accountingscandals to refer to a strategy of placing incompetent oreasily bypassed individuals in positions of due diligence andformal legal responsibility, enabling others to rob stockholdersblind. Only a tiny portion of venture capitalists, however, have102been found liable in the large scale frauds that rocked American(mostly) finance in 2000 and2001. |
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