The Dilemma
After a short recess, the board meeting reconvened. Presumably because of some discussion during the recess, several other board members indicated that they were no longer inclined to support the proposal. After a short period of rather heated discussion, the following exchange took place:
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Elliott: It appears to me that any vote on this matter is likely to be very close. Given the gravity of our demand capacity problem, I must insist that the stockholders’ equity be protected. We cannot wait three years; that is clearly out of the question. I still feel that licensing— domestic or foreign is not in our long-term interests for any number of reasons, some of which have been discussed here. On the other hand, I do not want to take this project forward on the strength of a mixed vote. A vote of 6–5 or 7–4, for example, does not indicate that the board is remotely close to being of one mind. Mr. Williams, is there a compromise to be reached?
Williams: Respectfully, I have to say no. If we tell the truth—namely, the temporary nature of our operations—the proposal is simply not viable. If we are less than candid in this respect, we do grave damage to the community as well as to our image. It seems to me that we can only go one way or the other. I don’t see a middle ground.