The Globe and Mail reports in its Tuesday edition that on Monday, Valeant accused former chief financial officer Howard Schiller and a former controller in regulatory filings of "improper conduct" by providing incorrect information to the board and auditors. The Globe's Sean Silcoff writes that the board asked Mr. Schiller to resign as a director, but he declined, rejecting the company's allegations.
Instead, he pointed the finger back to the controller and outside auditors.
This comes just weeks after Mr. Schiller stepped down as interim chief executive officer following Mike Pearson's hospitalization for pneumonia.
Removing Mr. Schiller is something only shareholders can do at an annual meeting, if there are more candidates than director positions and Mr. Schiller does not get enough votes for one of the 14 posts. "They're in a pickle," said Richard Leblanc at York University. "The CFO should never have been put on the board. It's an inherent conflict of interest."
Mr. Schiller, 54, joined the board in September, 2012, nine months after he became CFO. During his four years as Valeant CFO, Mr. Schiller was seen as a key reason for Valeant's success as it completed more than 100 acquisitions.
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