Originally posted by Teddyward
Hi
I can't see a previous note regarding this?
Do you have any record of it?
I know from memory the shares theoretically go back to initial employment but I don't have any notes referring to a mortgage against them in share incentive scheme. I haven't seen any interest statements in regards to his pay being deducted for interest payments etc etc.
Years ago the rules changed in regard to transparency of holdings and the ability of directors to have shares and have them held in other vehicles or have debt against them without declaration but unsure if it applies in this circumstance.. It does go to explain why when he had extras they were sold and also why he cashed in his long service leave a while back . That was a red flag as most unusual.
Have you any details of the mortgage or the original share incentive agreement?
To appear on registry shares must have been vested in his name or wanderlust , wife etc but I just can't remember seeing that CCE or another party had a mortgage over them or a right to them on resignation etc. I do know that internally a mortgage over securities would have had to be declared to board and approved from memory unless it was some sort of grandfathered system which I hope it wasn't
I don't recall when or at what price they were issued. If I have time over the weekend, I might have a look.
I have seen this situation numerous times in other companies though - the shares are issued against an interest free 'loan' - essentially an accounting entry.
The shares would not be able to be onsold unless the loan was extinguished (ie registered holder actually paid the loan out), and given these were no doubt way 'out of the money', that was never likely.
On the upside though, perhaps someone would like to buy them now. Even at 1cps, that would be $350k in the kitty.
