I have read all their reports in detail and the takeaway for the latest is that they are on track to showing a profit in FY10.
There are a few nasties in that report in respect of of the vote on how to deal with fractional shares. I am not sure if it is somewhat ambiguous or already an implied right but the following would have me concerned:
Page 3 Item 4 / 2.7 "The directors may do anything required to give effect to any resolution altering the companys share capital"
Whilst this is under the heading of Fractional Entitlements, it does seem to be a very broad statement that appears to encapsulate more than simply dealing with the specific issue of fractional entitlements. It is a resolution that shareholders must vote on.
If it is what I think it is it is a major resolution slipped into a minor resolution and if this is the case then it is very sneaky indeed. If I am wrong I would welcome being corrected. Is this a right that the directors already had?
ENG Price at posting:
85.0¢ Sentiment: None Disclosure: Not Held
