Hi
@TomaspAnd
@big finn is making a fair point - I think!
I have covered that issue on previous occasions. Nonetheless, if I was a shareholder, I would have asked the BOD for an explanation surrounding that case and in particular, the circumstances surrounding
para 15 from the record of the court.
Should the argument about relevance come up from a
pro holder - I would counter that view and simply refer all posters to the date of that case -
Sept 2017. To my mind - it is recent and it is a relevant topic for consideration and discussion by CGB shareholders and potential investors.
http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/vic/VSCA//2017/269.htmlIf I was a QBL / CGB shareholder, my questions to the BOD may have been something similar to the following;
1. "
Under what authority were the directors of Paradise able to make an application to the court that they could acquire a loan of $1,000,000 from QBL shareholders?"
2. "If, the Directors of Paradise had been successful with their application to the court and they had acquired the $1,000,000 from QBL, what was going to be the security provide by Paradise to QBL?"
"15 On 24 April 2017, an application made by the applicants (filed 12 April 2017) to vary the undertakings previously given by the Feldmans was heard by Randall AsJ. The variation sought was to enable the Feldmans, as directors of Paradise, to obtain a secured loan of $1 million from Queensland Bauxite Ltd (another company associated with them) for the purpose of funding legal and other expenses of Paradise. The application was refused."** para 15
http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/vic/VSCA//2017/269.html **(my bold)
As is noted, the court refused the application. However, I think that the success or otherwise of that particular application that was put before the court is immaterial to the direction of this discussion.
In my opinion, the
salient question that arises is, would the Directors of Paradise have made or have even been in a position to make that application to the court if the board of CGB / QBL had, at the relevant time, an
independent Board Chair and Board members?
