State clearly doesn’t want engaged citizens

Two pieces of news in the last week focused on the R.I. Economic Development Corporation make it abundantly clear that only the most risk-loving leaders of the Ocean State’s business community should volunteer to serve on public-entity boards of directors. More

To continue reading this article, please do one of the following.



PBN Editorial

State clearly doesn’t want engaged citizens

Posted 9/2/13

Two pieces of news in the last week focused on the R.I. Economic Development Corporation make it abundantly clear that only the most risk-loving leaders of the Ocean State’s business community should volunteer to serve on public-entity boards of directors.

In a ruling issued Aug. 28, Superior Court Judge Michael A. Silverstein said that nearly all of the state’s suit against 38 Studios LLC executives, former EDC officials and outside entities can proceed to the next stages. This is the suit that essentially says that there was a criminal conspiracy to defraud the state out of the $75 million that was given in guarantees to the now-bankrupt video game company.

And earlier in the week, the current EDC board voted to allow the bankruptcy trustee to use assets recovered from 38 Studios of up to $150,000 to explore potential legal action against “former directors, officers and others” tied to the company, according to the EDC’s attorney.

If it was not clear before, it certainly is now that the state intends to hold those people who served on the board and voted to approve the deal culpable.

Never mind that this looks like an ambulance-chaser’s tactic of suing whoever has the money (in this case the insurance carried by the volunteer board members’ employers for serving on boards of directors). Who would want to take the chance that a deal they voted for based on the information at hand that then went south could end up costing not just money but public shaming? This scorched-earth approach cannot be a good thing for the state’s business climate. •

Calendar
PBN Hosted
Events

Applications are now being accepted for the 14th Annual Business Excellence Awards Program. Deadline to apply is October 1st. And save the date for the Awards Dinner - November 12th at the Providence Marriott.
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement