Hi Hajji,You said:“A director's mandate is to work in the best...

Hi Hajji,

You said:

“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.

Below is Section 181 of the Corporations Act:

http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s181.html

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.”

http://imagesignal.comsec.com.au/docserver/01296234.pdf?fileid=01296234&datedir=20120510&edt=MjAxMi0wNS0zMSsxMDowNTowMCsxMjArMCtjb21zZWMrcmVkaXJlY3QrL2ltYWdlc2lnbmFsL2Vycm9yc
GFnZXMvUERGVGltZW91dC5odG1sKy9pbWFnZXNpZ25hbC9lcnJvcnBhZ2VzL3BkZmRlbGF5ZWQuanNw

In an earlier post on this thread, I have highlighted in detail why they should be paid out in cash rather than shares. Have a re read of this post.

The issue of shares is clearly not in our best interests.

I want to take this further. I have emailed the CEO and am still waiting for a response.

I suggest we all allay our concerns now.

I am happy for you to email me on [email protected]

Cheers