worst corporate governance on the asx, page-46

MisterS

I've just gone through AVX, PXS, SPL, HXL, and IPD's annual reports. These are all well progressed companies that are well funded with quality investors backing them. I think putting PRR in this group is somewhat generous.

The proposed issue to PRR director's made in the NOM for the EGM this morning stands out like a sore thumb to say the least.

I've also just run a black & scholes option pricing model on these options using their volitility and risk free rate assumptions (there was actually little need to as the options are essentially free shares I knew the answer) and to pay the Chairman and the CEO $2.34 MILLION is quite ludicrous. Including other cash compensation plus their existing options from last year struck at 2c their TOTAL COMPENSATION WILL BE around $3.0 MILLION.

If you think that's NOT snouts in the trough I'll go for a swim at Bondi at dusk with 10 LBS of bloodied beef tied around my ankle!

cheers

PS...using a spot price of $0.009 to value the options under balck and scholes is flawed methodology and I bet they get pulled up by the ASX on this. The NOM for the EGM is therefore incorrect and will need to be amended for a valid vote to take place...they've received appaling legal advice as well!

Clear and simple, you need to use the spot price at the time of the issue/agreement to issue.