Just like all the laws that sneak in along the way, when they are used "against you", all you are told is: "you guys approved it" or "you guys didn't oppose them" So, "they stand" and "tough luck".
Did anyone bark up the 2019 AGM (or whenever those vesting conditions were approved) and say: "Hang on, does this mean that if there is a takeover, or any other scheme-of-arrangement, your so-called "performance rights" will AUTOMATICALLY vest?? That doesn't sound reasonable. Mr Chairman, can you please explain right here and now to shareholders WHY you think is reasonable, and what incentive this may provide to directors and/or management with regard to seeking or focussing on a "scheme of arrangement", rather than doing their utmost to progress the company in the best interests of shareholders in general"..????
Nope, not that I recall. Me neither, didn't even realise it at the time.
Whether this ultimately proves to be "better" or "worse" in the long term, for shareholders, will never be known, as once (if) the merger is approved, we will never know the true outcome of the alternate path. We can only guess.
Like I said, there's a lesson in that.
GXY Price at posting:
$4.66 Sentiment: Buy Disclosure: Held
