I must agree SteveSage. If Hennessey was to step aside would...

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13/11/17

22:06

Post #: 28754339
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I must agree SteveSage.
If Hennessey was to step aside would this satisfy Mr Lev’s concerns? Wonder what the CEO thinks of all of this?

Originally posted by SteveSage ↑

On the one hand, I can see some validity to issues Lev has raised:
- software capitalization seems excessive & although I'm not an expert, but surely the value of the software is not the number of hours billed to develop it, but rather what income you can extract (arguably hard for software developed in house)
- the fact they wrote of some of the capitalized software means there was an issue (possible still is)
- not releasing the report to all seems petty (I mean how many shareholders want to physically visit their officers in Brisbane!)
- Hennessey as head of audit committee & KPMG as auditor not ideal

Other issues I'm less convinced about:
- a 11% shareholder cannot get answers especially as a board member
- a 11% shareholder quits & then launches questions from outside (is that really the way to get to the answers)
- auditors chosen by the entire board, and various reviews done to show their findings are not biased
- vote against remuneration due to lack of board experience
- the proposed resolution does not ask for change in auditor nor better/more experienced directors, and the only significant change is removing Hennessey so it's almost as if this is the primary aim

As a shareholder that wants to see this noise go, I think Hennessey should step aside, and a new auditor appointed and we get back on track to business.....it's a real shame as it seems like the business & CEO has started to build but this issue will be niggling in the back of peoples minds!

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CLH Price at posting: $1.41 Sentiment: Hold Disclosure: Held
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