Wooha - this is all moving too fast. We will be in more trouble...

Wooha - this is all moving too fast. We will be in more trouble with the ASX and ASIC and possibly with the ATO (tax office) if we don't take care about what we are doing.

Firstly we should see a CV and Resume of the candidates for directorships - and their references from professional people like solicitors JPs etc.

The candidates should read ASIC requirements for a directorship, mainly consent to assume the responsibilities of directorship in writing and capacity and willingness to exercise those responsibilities.

If you think the current directors have shortcommings, then by joining them as directors you imeadiately share those shortcomings and their obligations to rectify them perhaps from your own funds.

Consider this - HDY owes current directors back pay, including PAYG tax, and Super. We appoint 2/3 directors and say they are acting on our behalf.  Existing directors all resign and our new boys have to met ATO demands from their own funds.

So - that might be the extreme case, but first lets have the CVs and Resumes, - references asap,  Then lets have formal legal advice from a lawyer practising in this area of law. And get a full audited disclosure from the company of its liabilities and obligations.

If you can;t do that it is not worth the risk forget the whole thing.

WARNING - I knew of a crooked oil company (the oil lease had a vendor's buy back clause of $1.oo if at any time the company could not met its obligations) The share holder group had in excess of 20% and could call a meeting and appoint a director, it also had several very successful business men and company directors in the group - the crunch was that none would accept the responsibility.  The company's cash fell to just over 1 million, not enough to met the earn-in which was not yet due and the vendors exercised the buy back and the company accepted - total loss to shareholders.  Any shareholder who had accepted a directorship would have been embroiled in the muck.