The further development of Deflector under the direction of a new board and other new arrangements is so obviously the right strategy regardless of the current POG. At some point this will all turn around and the best way to benefit from that upturn is to be sitting on a proven up rich resource. The trick however is for the admin to remain frugal so that the doors can be kept open while sitting this waiting period out. And this brings me to the main point of this post.....money..
We are all aware that the atmosphere between board and shareholders turned poisonous when the MD's remuneration was super sized and dissent was reportedly met by threatening to bring lawyer boots into play. One would assume with the new broom sweeping away previous directors it would have included those who may have been litigation happy, and could have spent more than the known $1,100 of company funds indulging themselves. The board has a duty to recover any company monies which,if inappropriately spent by previous directors,on private legal fees. The amount could be considerable. The new board of EGO for example is pursuing its previous directors for 461k! worth of legal fees. This is one loose end which needs to tied up.
Next remuneration. We are still very much in the dark as to whether there have been any changes, or if any changes are planned. At this stage all we can do is to assume that board and secretary remuneration remain the same and the remuneration of the incoming MD is, as far as shareholders are concerned, anybody's guess. At a time when belt tightening is paramount letting this one hang loose is inviting a backlash similar to Oct. 2012.
Unless these issues are properly addressed I can see another EGM brewing. The 200k secretary salary is clearly excessive and needs to be tested by shareholder vote. Board remuneration needs to be clarified, particularly the package which the new MD will command.And finally those legal fees need to be fully disclosed. Should this disclosure not readily take place then it will be the duty of shareholders to prise it out.
One would hope that common sense will prevail and that these matters will be laid to rest. I would much rather be talking about Deflector than old skeletons still in the cupboard.
MYG Price at posting:
2.9¢ Sentiment: Hold Disclosure: Held
