Ann: Resignation of Director, page-68

It seems that a lot of people are being dismissive about the importance of him resigning.

He knows more about the company than we do so his resignation is a signal to the market that something could potentially be wrong that outsiders are not aware of. With a micro cap (that's performed poorly on the market) board stability is important, particularly when he was the Australian director of a Chinese company providing a degree of confidence since we can't get information about the business as easily as we could with Australian companies due to different operating environment, distance, legal differences etc.

Apparently he was advocating payment of a (large) dividend. There's a chance his resignation involved disputes over the dividend, which is crucial in the market perception of the stock.

His short tenure does not look good, even if he and the company have a good explanation of why he left, there could be more than meets the eye. Company directors are diplomatic and not going to tell you if there's internal politics going on which could have resulted in him choosing to leave or being pushed, particularly if they know they are going to be quoted on hot copper straight after speaking to shareholders.

In sum, even if he has a good reason for leaving e.g. lots of other directorships, if you had many directorships to choose from, chances are you won't leave the one you thought offered the greatest prospects or that you were highly confident is a bargain - you might start by leaving the one you had some doubts about.