fintronics, page-4

If the law in Hong Kong relating to directors duties is similar to that in Australia, which I assume it would be given its former British colonial heritage, then arguably Broers may have a case to answer for. Quite clearly he is a director appointed as a result of CAL’s shareholding in Fintronics. On the face of it, there would appear to be conflict issues in Fintronics not pursuing the deal and CAL ending up with a sweeter one shortly thereafter. Either way if litigation is pursued it will result in an expensive and time consuming distraction. Clearly the relationship between CAL and the Fintronics board as it currently stands is quite toxic. A takeover by CAL would clearly end the prospect of litigation against Broers or any litigation which may be on foot. However it remains to be seen if that is to be pursued by CUS and CAL. Either way the investment in Fintronics has been a disaster to date. All Fintronics has going for it at this stage appears to be the cash in the bank occasioned by investments made by CAL and other investors. This is not what CUS needs at the moment. No wonder the S/P continues to drift significantly lower. CUS cant take a trick. It looks like it will hit .145 sooner rather than later…