"Larry the Liquidator" on Senate Bill 1174
2010 Senate Bill 1174 (Rewrite corporate takeover rules for particular insurance company)
Introduced by Sen. Gerald Van Woerkom (R) on February 25, 2010, to rewrite the rules for corporate acquisitions so as to raise obstacles to the acquisition of a controlling interest in the Fremont Insurance Company (which is located in the district of the bill sponsor) by the Indianapolis-based Steak and Shake Corporation. Specifically, the bill would require a two-thirds supermajority of shareholders to vote in favor of the sale if the current board of directors opposes being taken over, but only for a "domestic (Michigan-based) insurer with 200 employees or fewer."
". . . Take the money. Invest it somewhere else. Maybe, maybe you'll get lucky and it'll be used productively. And if it is, you'll create new jobs and provide a service for the economy and, God forbid, even make a few bucks for yourselves."
This speech is from "Other People's Money," considered by some to be capitalism's finest film. "Predatory" investor "Larry the Liquidator's" (Danny DeVito) explains to shareholders considering a vote on a "hostile" takeover the virtue of encouraging the movement of capital from less productive uses (and managers) to more productive ones, not only because it will make money for them, but because it ultimately increases the overall wealth and well-being of a society.
Grand Rapids Press report on this story.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.