According to Thomas Wheelen and David Hunger (2010) a corporation is a mechanism established to allow different parties to contribute capital, experience, and labor for their mutual benefits. As the corporation develops these different parties become one under different levels of management working towards a common goal. These goals are a result of strategic planning on behalf of management and the board of directors. When discussing strategy and strategic planning, corporate governance is a direct link the outcome of an organization’s over all strategies. Relationships among stake holders, current and future goals, corporate policies, processes and corporate culture are all crucial pieces of corporation that in effect, determine the future path of the organization. Though preparing this paper I have learned the important links between strategic planning and corporate governance. I was able to see firsthand though the article, “Aldila, Inc. Moves Its Stock Listing to OTCQX” how corporate governance and strategic planning can have a lasting effect on a corporations well being.
Before preparing this paper I was unaware of the substantial cost of being listed on a major stock exchange. In addition I learned about the financial burdens corporations incur reporting under Sarbanes- Oxley and the Exchange Act.
“Aldila, Inc. to Move Its Stock Listing to OTCQX”
“Aldila, Inc. to Move Its Stock Listing to OTCQX”, an article written by CNN Money, announces that Aldila Inc made the decision to voluntarily delist its common stock from the NASDAQ Stock Market and move its listing to OTCQX, which is an over the counter market. The writer then goes into details about the decision to delist and how it was a strategic move passed down from the board of directors. The decision was made as a result of the board ongoing efforts to reduce expenses.
Delisting from the NASDAQ Stock Market...