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Forum Report: Deciding what you'll tolerate at Computer Associates

(July 29, 2002)

Sent: Monday, July 29, 2002 7:06 PM
Subject: Deciding what you'll tolerate at Computer Associates

 
There are a few points I'd like to make clear about my position concerning Computer Associates.
 
First, I've had no interest in Computer Associates other than as an observer since completing the forum for last year's proxy contest.  I had nothing to do with this year's contest.
 
Second, my continuing distributions to last year's forum participants were intended to encourage effective shareholder monitoring of investments, which is something I've advocated consistently in relation to Computer Associates as well as other situations.  Shareholders should not tolerate any interference with investor rights to be informed, and, especially, should not allow management's use of shareholders' money to silence dissidents.
 
Finally, and most importantly, shareholders must assume responsibility themselves for the protection of their investments.  Any shareholder, for example, has the right to demand an inspection of Computer Associates' board records to investigate the directors' reasons for approving a $10 million payment to stop a challenge to their election, so that you can make an informed decision about voting for them -- now or in the future -- or about seeking recovery of corporate funds from them.  You can also demand the accounting books and records required to perform your own due diligence of management's various presentations of financial reports, or to find whatever reports management relies upon to control your corporation's operations and assets.  These are things you can do now, if you choose, rather than wait to see if anyone delivers on their promises next year.
 
One thing that Computer Associates demonstrates is that shareholders will get what they tolerate.  It's up to you.
 
                GL - 7/29/02
 
Gary Lutin
Lutin & Company
575 Madison Avenue, 10th Floor
New York, New York 10022
(Tel: 212/605-0335)
(Fax: 212/605-0325)

 

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