I posted this on MMR and wanted to make sure that you are aware of the questions I asked BPH Chairman, David Breeze who is requisitioning an EGM to replace the current MEC board and replace them with his own people. BPH owns more than 20% of Advent Energy so any action David Breeze does will affect Advent and thus your share value.
My open letter to Mr David Breeze, former MD of MEC Resources.
Mr. Breeze,
I thank you for the courage to requisition an EGM to remove the current directors and install three directors whom you think will be better than the current ones. I am open to your proposal but before you gain my votes, I have some questions which I would like you to answer in this chat site as well as at the EGM so that SHs who are unable to attend the EGM can have these answers to help them in their decision making. These questions will be asked to you in person during the EGM, so please come with answers.
1. Why do you think your proposed directors (Fontaine, Gilbert and Huston) are better than the current directors?
2. What skill sets do they have that makes them more suitable? Do they have a strong track record specifically in the Australian oil and gas industry?
3. Are they independent and not under your influence? I noticed that Gilbert and Fontaine are current directors of BPH, a company you are Chairman of.
4. Can you confirm that you locked MEC and Advent employees out of the office following the most recent AGM after you failed to vote out the current directors? Can you confirm you blocked access to all MEC and Advent employees' emails, thereby obstructing the company's operations for many days?
5. Can you confirm you refused to return MEC/Advent documents, data and even shareholders' contact details to the company after your contract as MD was terminated?
6. Do you not think this EGM and any boardroom battles are just a waste of MEC's financial resources and is at the expense of shareholders? Is the intent to drain MEC's cash reserve so that the company goes under administration/bankruptcy?
7. Looking at your performance record as Exec Chairman of BPH, you run an illiquid company - the debts owed to directors, including yourself ($700K) is $1.15m, however the company has less than $600K in cash reserves. Is this indicative of your management style and will MEC and Advent suffer the same fate? The MEC annual report shows BPH owns more than 20% of Advent.
8. Assuming you regain control of MEC, what are your short-term plans and what are specific KPIs you want to achieve within the next 12 months? Till date we have not received any guidance as to what you intend to do with MEC.
9. If the resolutions you have proposed for this EGM are not passed, will you continue to fight for control or will you take it on the chin and walk away?
These are some of the questions crossing my mind right now while I decide who I should trust. Many SHs have the same questions. Your feedback will be most helpful if you are true to yourself and your SHs.
Thank you,
HB
BPH Price at posting:
0.4¢ Sentiment: Sell Disclosure: Held
