CE1 calima energy limited

Shareholders should never vote for management and board...

  1. 4,937 Posts.
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    Shareholders should never vote for management and board incentives that are not directly linked to shareholder wealth .
    Higher production can be achieved by raising more capital or by the company taking out debt .
    Neither of these things are necessarily in the best interests of shareholders .

    CE1 took out debt with its attached toxic hedging requirements and did a surprise credit raise in the process of the drilling that achieved the production hurdles that got the rights vested .
    In that process the share price has more than halved .

    " Show me the incentive and I will show you the outcome ." Charlie Munger .

    It is a pity that retail investors seldom vote at Annual Meetings .
 
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Currently unlisted public company.

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