share lending works as security bond , page-4

Who said they would dump the shares??

How does the lender make a profit on his/her loan??
Most times they get shares issued at current price less % and are free to trade at will,(standard practice)This is not to manipulate the SP its to realize a profit from there loan.

Why did a director lend his shares?? well it was not a lend because he now has reduced his holdings??

If this arrangement/loan was/is so good why has the sp retreated?? There are a lot smarter people out there than some of us mugs on HC.

IMO there is more to this than we can see.
Plus the report from Bentleys that says they have lent themselves shares in advance to get money.which is in breach of asx rules,

I suggest all go back and read the ann
PG 30 of the half yearly accounts.

this is some of it.

Basis for Qualified Conclusion
Payments made to Directors
During our 30 June 2010 audit, it was brought to our attention that the Directors had prepaid directors? fees totalling
$403,340 of which $357,452 directly related to additional cash payments. As at 31 December 2010, the balance of
this prepayment is $275,402 and it comprises of amounts detailed in Note 6. This amount is currently recorded in
Other Assets.
The details surrounding these payments are disclosed in Note 6 of the financial report and cover directors fees paid
in advance, amounts paid to enable the Directors to take up their entitlement in the non-renounceable pro rata offer
of partly paid shares pursuant to the prospectus dated 23 April 2010 and overpayment of directors fees due to the
Company not withholding and remitting PAYG withholding tax. It appears that in all three circumstances, that the
Directors have obtained a benefit from the Company.
Section 11.6 of the Constitution of the Company requires that remuneration of the Directors should be approved by
shareholders. There is no evidence of such approval being obtained by the Company. We remain unable to
determine whether such approval was required for the payments to Directors referred to above.

A must read for all holders.