JBL announcement, page-4

From the prospectus:
* The management services agreement includes: "managing the investment of the Portfolio and complying with the investment policy of the Company"

From "Progress Report to Shareholders" announcement:
3. BHD has provided JBL with guidance that it considers that the only acceptable investments in the current circumstances consist of cash deposits held in the name of BHD at Australian Deposit Taking Institutions (ADIs) only. JBL as investment manager have been provided with instructions in this regard, although JBL maintains that it is not obliged to follow guidance provided by BHD. BHD is considering the consequences of this non-compliance, with terms of the MSA.

JBL's non-compliance here could give our new directors grounds to terminate the management agreement without penalty.

Unfortunately, even this can be creatively interpreted by highlighting the difference between "guidance" and "policy". Our new directors providing "guidance" doesn't necessarily mean that there's been a change in "policy" that requires the investment manager's compliance. On the other hand, if our new directors announce a change in "policy", this could be interpreted as operating outside the terms of the company's prospectus without first obtaining shareholder approval. It's a legal minefield.

I know I've said this before, but I find it very frustrating that we have to play this game of wits when everyone can plainly see what's really going on.