I am not saying ISX is at fault. I am saying JK stand down as a gesture to help get the company back to normal operation. An independent board and management would definitely help that. It is a sign of improved governance. Andrew Forest of FMG had a few years of absence as chairman or director, maybe still is. But FMG is doing well. JK stand down does not mean he need to leave the company or have no influence.
A court battle could take many months maybe even years. By the time you win the court case, you may have already lost all the customers and the company could go back to 20c. By the way, in October, ISX almost could not onboard any new client.
It is beneficial to all shareholders including JK himself, because he is the largest SH. For me, I would rather have shares in a normal operating company than shares in a severly damaged company, even it may be a hero that fought and won a battle agains ASX.
Community expectation has changed a lot, especially to financial services companies. You just need to look at the latest Westpac case and IOOF case. Before these two company get to court, they already lost their CEOs and in IOOF case chairman as well. Ironically, IOOF ex CEO and senior executives did win the case against APRA. But, so what, he did not get his position back, IOOF did not recover its damange.
I have enormous respect for JK to found this company and build the company to date. He has done a fantastic job. But I believe more professional appraoch may be needed in terms of governance and the way dealing with ASX, given its in financial services industry and it is a $1bn company now.
Its only my HO. I don't care who is right or wrong, time will tell. I care about my investment.
cheers
ISX Price at posting:
$1.07 Sentiment: None Disclosure: Held
