In c-Bay auctions, the seller can set a secret reserve
price in addition to the opening price by paying an extra fee.
Although the secret reserve was short-lived, the case and its aftermath throw light on the governance of the company, and in particular on two conflicts between directors and shareholders which both reappeared more markedly in the interwar period.
Chamberlain was accusing the board of bringing in a secret reserve to hide their failings; in a good year, profits could be hidden to be paid out in a bad one, and shareholders had no way of monitoring the directors' actual success or failure.
Therefore, we hypothesize that bidding activity will be lower when there is a secret reserve
Sellers in eBay auctions have the opportunity to choose both a public minimum bid amount and a secret reserve
74) Also, many works of art are subject to a secret reserve
, and auction houses will frequently say a fictitious buyer bought a work of art that did not meet its reserve.
Thus Robb describes in some detail how Lord Kylsant, as a director of the Royal Mail Steam Packet Company, had for several years in the 1920s paid dividends out of a secret reserve
fund in order to conceal the company's trading losses.
He had a sixth sense about himself, a secret reserve
of the will to win that was rooted in his own imagination.
Napier's article discusses the history of using secret reserves
to manage earnings by some companies in New Zealand.