Following this addition, one of the members resigned because Wiegart deliberately lied to the members stating that the investor insisted on there only being four board members. In the meantime, Wiegart continues trying to sell his fabricated business plan with potential investors, losing their trust, and burying the company in a huge financial deficit. The board members did not challenge Wiegart and try to take control of the situation until the financial position of the company was in dire straits and it was, in a sense, too late. The board members acted completely inappropriate despite Wiegart’s deceitfulness and manipulation. The boards major failure was waiting too long to take action and failing to notice the clause in Wiegart’s contract that mentions receiving a “90 days’ written notice and opportunity for Employee to remedy any non-compliance”. They never confronted him formally about his poor management or ill-fated decisions and the board will now have a hard time firing him and not receive some form of legal action taken against them. However, the first initial mistake was the president and founder of the company appointing himself as the chair of the board.
There were many possible ways in which this could have had a much more favorable outcome. The most obvious one is a law set in place that does not allow the president and the board member to be one in the same. The