Hi to All Long term Investors in Lynas corporation.
There are many cases where management is not acting in the best interest of shareholders and sometimes even against shareholders. Recent examples include ESG, Chesapeake Energy, Yahoo, HPQ SSN, Barclays Bank, JP Morgan Chase, Lehman Brothers, AIG,ENRON, to name a few. CEOs get fat bonuses and golden parachutes even if their company is failing due to management mis-steps and downright negligence. So are shareholders not entitled to criticize Boards and management when things go wrong.
This is taken from an ASA position paper and the ASX Good Corporate Governance Principles.
1. EXECUTIVES AND CEOs of companies are PAID AS FULL TIME EMPLOYEES of the company (LSA’s emphasis). Consequently in the ASA’s view would not have capacity to be Non-Executive Directors of companies outside their corporate group. To undertake such responsibilities would risk INADEQUATE EXECUTION OF BOTH ROLES (LSA’s emphasis).
Mr Nicholas Curtis AM sits on the Boards of two ASX listed companies (ASA equivalent directorships of 3) plus a number of private companies and charitable Boards. His workload is far in excess of that which can be reasonably expected of one person.
AUSTRALIAN Shareholders Association (ASA) has determined as policy a maximum of 5 directorships or equivalent(ranking a Chairman’s role as two directorships), beyond which, a Non-Executive Director, in the view of the ASA, could be at an unacceptably high risk of becoming overloaded and failing in their duties as Directors.
Some of the delay and unforeseen difficulties that have beset Lynas in getting the plant in Malaysia operational can only be due to the failure on the part of senior management to adequately manage the political situation in that country. This was finally admitted by Mr Curtis in a recent interview with Bloomberg.
Lynas corporation is currently in breach of 2.2 & 2.3 of the ASX Corporate Governance Guidelines in that it does not have an Independent Non-Executive Director filling the role of Chairman and the roles of CEO and Chairman are filled by the same person Mr Nicholas Curtis.
1. Mr Nicholas Curtis AM has served as CEO of Lynas Corporation (since 2001) and both Chairman & CEO since 2005. Lynas corporation Level 7 56 Pitt St Sydney NSW 2000 www.lynascorp.com.au Market cap $1.466 Billion based on a closing price of 0.855c on Friday 6.7.12
2. Mr Nicholas Curtis also serves as Non-Executive Chairman of Forge Resources(FRG) Level 24 56 Pitt St Sydney NSW 2000 http://www.forgeresources.com.au Mr Curtis currently holds 34% of shares on issue in FRG Market cap $20 million Forge Resources (FRG) has the following assets. Eucla Mineral sands tenements in SA and the Balla Balla Magnetite, Titanium & Vanadium project in WA, recently purchased from Atlas Iron. Please refer to recent ASX anns for further details.
Directors of Forge Resources (FRG) Harold Ou Wang Non-Executive Director and formerly an executive and also a Director of Lynas corporation until 2007
Michael Wolley Non-Executive Director appointed by Todd capital, previously worked for Lynas corporation as COO from 2007 until the recent appointment of Mr Eric Noyrez (ex Rhodia) to that position. Emmanuel Correia Non-Executive Director
Dr Matthew James CEO - ex Lynas corporation. VP corporate development and communications resigned August 2011 to become CEO of Forge Resources.
3. Mr Nicholas Curtis is also the founding partner with Harold Ou Wang of Riverstone Advisory Pty Ltd a private corporate advisory firm that brings Australian resource projects and Chinese investors together. Dr Raby formerly Australian Ambassador to China joined the Board of Riverstone Advisory in 2011 upon his recent retirement from the Department of Foreign Affairs.
Authorized by the Committee of the Lynas Shareholders Association.
best regards to ALL holders
jukieoz836
________________________________________ Disclosure: I am Public Officer of the Lynas Shareholders Association Inc (Reg Vic) Contact: [email protected]
LYC Price at posting:
85.5¢ Sentiment: Hold Disclosure: Held
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