Thank you for your detailed response. The effort is sincerely appreciated. While I appreciate your perspective, the afr authors concern lies not in routine ASX queries but in the timing of the sale coinciding with undisclosed regulatory interactions. The ASX's role is acknowledged, but investor confidence and share price hinges on transparency, trust and confidence based on proven results. Otto's history with IWL is acknowledged, yet he seems to have had his fair share of time to prove himself and the current cost base being zero post-sale seems undeniable as it relates to RHY.
Despite OB's tenacity in previous ventures (especially finance roles, including IWL), the strategic and execution concerns at RHY persist for mine. The delayed commencement of strategic review, the delayed CEO advertisement, the lack of iteration of strategy, not running dual track commercialisation measures, the share price decline, and the technicalities you mentioned don't negate the need for executive accountability. Some specific thoughts (not exhaustive):
- Regulatory Process and ASX Scrutiny:
- While regulatory queries are routine, the authors concern was the concern is the timing of the share sale coinciding with undisclosed (at the time) TGA interactions and lack of IVDR strategy as it related to EU market.
- ASX scrutiny during a trading halt is standard, but the focus is on transparency and shareholder confidence, not solely ASX approval.
- ASX's Handling of Share Sale Disclosure:
- Share sale disclosure does not absolve shareholders 'best practice transparency' concerns about the undisclosed regulatory request for information. ASX scrutiny doesn't necessarily encompass all aspects of the situation as I'm sure you'd be aware.
- ASX doesn't necessarily assess the strategic implications or the market perception, which are vital for shareholder confidence and returns.
- Securities Trading Policy and Board Authorisation:
- Acknowledging the existence of a Securities Trading Policy, the issue is not about legality but about strategic judgment and its impact on shareholders.
- The concern isn't the legality of the share sale but the perception of strategic decisions and their consequences.
- OB's History and IWL Reference:
- The focus is on the current situation at RHY, and while OB's history is acknowledged, it doesn't negate the need for accountability based on the current context at RHY.
- Reference to OB's past actions doesn't address the strategic concerns and execution challenges faced by RHY under his long tenure. He's had long enough to prove himself and to be judged based on the pace and judgment of his response to the external and internal environment.
- Strategic Review and (Un)Timely Decision-Making:
- While the Board's commitment to a strategic review is acknowledged, the concern is about the timely realisation of strategic challenges and the resulting impact on shareholder value.
- The strategic review, while positive, prompts questions about the timing of recognizing challenges and the subsequent actions taken to rectify them e.g.
-The extensive delay (275 days) in advertising the CEO role on LinkedIn jobs raises concerns about the Board's proactive approach and decision-making timeline. This ignores broader concerns around the timing of the advertisement running concurrently to a 249D action and the overall JD & approach.
- Rather than relying on a job ad, immediately, upon Glens departure, some 275 days ago appointing an independent selection committee upon with the relevant experience and network seems like a more prudent methodology to identify a suitable candidate. RHY need a gun candidate, likely through headhunting, to turn this around (perception and reality wise).
- At the end of the day, faith in the Board and executives should be grounded in tangible results.
In the private sector, the aforementioned (above and in my prior posts) poor commercial outcomes and delayed action would undoubtedly prompt rigorous scrutiny and accountability measures to ensure the sustainability and success of the company, rather than self preservation measures and technical defence of actions and delays.
