@MrAwesomeMorning Mr A
Apologies - I missed your post.
It certainly is an interesting idea.
I think many of my views might be at too great a variance to some of the Board. Then again ... perhaps not? It might be advantageous to discuss the points with them by asking some relevant questions around current operations. I actually think I might attend the next AGM.
Hypothetically.
1. I would be encouraging the BOD to resolve to cease loaning any more shareholders money. I would also encourage a mindset / decision framework to be applied at every meeting - something like - '... t
he cash and resources of CGB and its shareholders is only expended for the benefit of shareholders'. And I am not suggesting that this is not presently the case.
2. I would be encouraging the BOD to resolve to 'call in' all outstanding debts immediately. If, they were not repaid, I would charge interest and heavy penalties. Shareholders money must be 'put to work' and not permitted to sit idle in the bank account of another entity or, wherever.
3. I would be encouraging the BOD to resolve to immediately withdraw CGB financial involvement in all research programs. CGB needs to make money for its holders before paying for research in an offshore jurisdiction There's research available within the public domain for the purposes of the business direction of CGB.
4. I would be encouraging the BOD to resolve to consolidate the current strategic plans and direction as outlined in the cap raise documents.
5. I would be encouraging the BOD to resolve to apply some very exacting KPI's to every executive position. Don't perform - see you later!
6. I would be encouraging the BOD to resolve to slash costs across the company. The first priority must to be to implement a strict regime of manage capital such that the likelihood of another cap raise is reduced, at least in the short term. I would want to clearly understand the benefits associated with paying out for a research program as well how interest free loans to related entities benefit shareholders.
7. Lastly, I would be encouraging the BOD to resolve to greatly enhance Board engagement with shareholders.
Anyone see anything wrong with the above?
Rationale.
Well ... here's a research task for all holders.
Go back over the years and then total up, in broad terms, the funds that have been raised and then expended. Then ask yourself, "...
for what purpose have these funds been raised and to whose benefit have these funds been expended?"
Generally, I think all investors are better off if they can develop an improved understanding of the investing and the regulatory environment. I would encourage all shareholders to read these documents (ASIC regulatory guides). In fact, I think it is useful reading for all '
spec stock' investors.
1. Regulatory Guide 76 RG 76 - Related Party Transactions.
https://download.asic.gov.au/media/1239851/rg76-published-11-may-2011.pdf2. Regulatory Guide 128 RG 128 - Collective Action by Investors.
https://download.asic.gov.au/media/3273670/rg128-published-23-june-2015.pdfAnd insofar as the guidance that is provided in the document below and how it could be implemented - I would make it the company's 'go to' guiding document. It may already be so but I would expedite the implementation of many aspects of that document.
https://www.asx.com.au/documents/asx-compliance/cgc-principles-and-recommendations-fourth-edn.pdfCompare the above with the following.
https://www.canngloballimited.com/wp-content/uploads/2019/10/CGB-190726-Corporate-Governance-Statement.pdfJust my views and some random thoughts.
