Value impact, Strategic policy risk, Accounting risk

A group of shareholders, upset about the board's plan, submit a formal objection to the Company's board as well as to the SEC. In the objection, the shareholders state that the independence of the board has been compromised to the detriment of rhe company and its shareholders. The objection also states that:

• The value of the Company's common stock has been impaired as a result of the poor corporate governance system.
• The liability strategic policy risk of the Company has increased due to the increased possibility of future transactions that benefit the Company's directors, without regard to the long-term interests of shareholders.
• The asset accounting risk of the Company increased due to the inability of investors to trust the Spin-off company financial disclosures necessary to value the division.