Perhaps I can answer to your first three points using the following examples:
If you manage Co A and I manage Co B and we form a joint venture to form Co C on a 50/50 basis. This was to gain a benefit for our respective shareholders and should this not mean costs should be split down the middle? Now suppose you are forced to resign and I assume control over both Co A and B. Nothing changes and it’s still a 50/50 j.v. Would it be fair and reasonable if I then favoured Co B by arranging matters to enable shareholders of Co A pay all the costs of forming Co C? Now imagine I keep arranging for Co A to raise funds from its shareholders to continue paying the all costs of the j.v. and became unable to fund other important projects and ended up broke, would this be right?
The SARCO joint venture was established in September 2006, John Towner and his son were the sole executives and major shareholder in Ord. I don't believe he would agree or even dream of diluting his shareholding to fund CNIMM.
My understanding is that Frank has been an Executive Director since 2009 and the sole one for the past few years. All others were non-executive directors. Frank has always been a member of the board of directors and an employee of Ord and had a specific role as Head of Corporate Development (now CEO) and was responsible for the day to day running of the company. The non-executive directors are members of the board who are not employees of Ord. Rather, they are members of the board appointed for their expertise.
It would be the Board that accepted Franks resignation and the same Board that made him CEO four days later, Noting the 2012 annual report shows a termination benefit of $263,000, a post-employment benefit of $85,000 and a share based payment of $123,000. I suspect it was all a subterfuge to enable Frank to cash in
I cannot agree with your last point, especially when Ord has an equal say in the j.v. Ord shareholders pay Frank a good salary, superannuation and expenses for management of all activities affecting the company and this includes the j.v. Shareholders have lost considerable funds over the past few years and this is ongoing. They pay him to rectify this situation and certainly not to sit on his hands in his office overlooking Circular Quay, pausing occasionally to write Dorothy Dix reports.
VAN Price at posting:
1.0¢ Sentiment: Buy Disclosure: Held
