Why not deal directly?, page-5

If I recall correctly, CTN was sitting on what, $40m of tax losses. So if it becomes NAOS Small Companies Fund, what happens to those tax losses? Business continuity?

Really, how is this in the best interest of CTN shareholders? Why was the decision made to simply close CTN down by giving it to another fund manager so soon after pulling the money back from OC?

Why did the CTN board decide it was appropriate for CGA to decide for CTN what NAOS new non microcap strategy was going to be? The contempt for shareholders is abominable, but, entirely consistent isn't it. I would really like to know at what stage did the CTN board stop doing their job- which is to act in the best interests of CTN shareholders, and start taking orders from the CGA board and (appear to) act in CGA shareholders interest? Ironic isn't it, this is precisely what the outgoing board said was happening and would happen. Was this the plan all along?

It just makes no sense. If the CTN board decided that microcap investing was a lost cause wouldn't they offer shareholders an equal opportunity buy back? Didn't Bell Potter Masters Fund and Dexia LICs close down and give money back to shareholders?

I cannot understand how the CTN board permitted CGA to on-sell THEIR right to determine the manager, and how CGA can take a payment for that? It makes zero sense.

And yes, why would NAOS not simply speak to CTN board and say assign it to us and YOU pay out CGA, give us a long contract and we'll kick money into CTN to pay CGA out, pending shareholder approval? Then it goes to CTN shareholder vote which resolutions include NAOS senior staff coming on CTN board

Better still, why wouldn't the CTN board just wait 18 months and then fire CGA altogether? This would be almost a certainty that they would not meet the minimum performance milestones to remain manager. At that point CTN could demand the fee NAOS is presently prepared to pay to CGA, or, do what is what you would expect they would do and undertake a widespread search for the best microcap manager available.

Really, if the CGA poison pill were 20 months away- mid 2018, then CGA would know they are better to take say $5m now and walk, than wait 20 months and receive nothing. So Basically, CTN could charge NAOS the $12m now and give CGA $5m to walk, IF their DD showed NAOS were the preferred manager

What an objective observer would ask is why are the CTN board appearing to act not in favor of the best interest of CTN shareholders, but in the interests of CGA shareholders? But then if people were objective they would have seen this coming and recognised why certain parties so eagerly wanted to remove the previous CTN directors

That Mark Kerr refused to be a party to this, after what he did to the company and his fellow directors earlier this year as "Chairman", tells you how dirty even this must be

The tail wags the dog


Oh, and may I offer to the CTN board, letting CGA write the goodbye, farewell and Amen letter to your shareholders was embarrassing but it made sense. After all, long time CTN shareholders would not recognise a single person in CGA or CTN other than Bill Leister, who has probably already been given a DCM too.

Very sad