Continuing his testimony in the lower Manhattan trial of former Tyco chairman, Dennis Kozlowski, and finance chief, Mark Swartz, former director of the conglomerate, Mark Fort revealed that his successor was permitted to spend up to $200 million on acquisitions without consulting the board of directors.
Underlining the large amount of freedom that Mr Kozlowski had when running Tyco, Mr Fort explained that in 1997, the board voted to allow "deal-a-day Dennis", as he was known, to make acquisitions up to $50 million without obtaining the board's approval. This figure was doubled in 1999, and again in 2000.
Mr Kozlowski and Mr Swartz stand accused of bilking the firm of $600 million through the use of unauthorized pay schemes and covert stock sales. However, their lawyers have argued that the men did nothing illegal, and that all of their actions were approved by the Tyco board.
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