“A director's mandate is to work in the best interest of shareholders and I fail to see looking after CNP holders at the detriment of CER holders is legitimate.”
You are spot on. Sections 180-182 of the Corporations Act specify this requirement clearly.
Good faith--civil obligations Good faith--directors and other officers (1) A director or other officer of a corporation must exercise their powers and discharge their duties: (a) in good faith in the best interests of the corporation; and (b) for a proper purpose.
Seanmorr, as far as I am concerned (sorry if repeating myself) but I made the decision to approve the recapitalisation based on being told in the disclosure documents and subsequent supplementary disclosures that the CNP secured creditors were being issued CATS for CER class action liability.
Also the announcement on 10 May 2012 regarding the settlement clearly states on page 2
“CRF to issue additional CRF stapled securities (for nil consideration) or make a cash payment to CATS holders.”