Thursday, May 04, 2006

Royal Group Maneuvers

Royal Group's (NYSE:RYG) former audit committee chairman Mr. Greg Sorbara is trying to remove his name from search warrants police executed. On Mr. Sorbara's watch two now controversial property deals were entered into between Royal Group and Sorbara Group (Sorbara family private company). Everyone denies everything. Many observers feel shareholders were disenfranchised. Prosecutors allege Mr. Sorbara did not inform the company's external auditors of the transactions. Mr. Sorbara resigned from Royal's board in 2003 when he became Minister of Finance for the Province of Ontario. When the scandal broke he resigned his cabinet position.