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4.2¢ magnis energy technologies ltd

Ann: CEO Termination, page-27

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robbo24

10,964 Posts.

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23/08/20

13:42

Post #: 46747914
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Originally posted by Robleeway: ↑

I have no more actual knowledge of the facts than any of you. However I’ve been a listed Co ceo and I’ve also been directly involved in terminating one.

This will not turn out to be about non performance or contract expiry. As others have noted it is a termination with no “thanks for your efforts” etc. Therefore imo this is likely to be about a very serious breach of company policy at the least and probably a breach of the law.

Terminating a ceo causes significant grief to the company and the board compared to demanding his resignation and they wouldn’t bring that on themselves unless there is really no alternative. Examples (purely hypothetically and for illustration only) would be something involving dishonesty (eg corruption, fraud, misleading the board or the ASX) or serious personal reprehensible conduct (eg violence, drugs, threats).

On the brighter side it does not necessarily mean the value of the company will suffer more than short term damage.

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Could it also be refusal to acquiesce a decision/action of the board/company and subsequent refusal to resign?

That is to say, the CEO may not necessarily be a party to your hypothetical "very serious breach of company policy at the least and probably a breach of the law" - quite the opposite.

Last edited by robbo24: 23/08/20

MNS Price at posting: 21.0¢ Sentiment: None Disclosure: Not Held
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