It is meant to be the job of administrators to ensure that the Directors took no action that has the effect of ring fencing or insulating assets that might have been used to satisfy creditors. However as one can assume that all of the Directors would also be creditors, the other question is, how much are Directors owed? and for what? I suppose it should also be asked how much were Directors paid, in the course of the last year (or two) and for what? Given the results they achieved....
However administrators are not renowned for their transparency, and their interests and the interests of shareholders are not aligned, so while they may review the actions of Directors and what on the surface appears to be an obvious insider deal to sell the materials business as the ship was sinking, the results of any investigation they undertake and what they find may never be known to shareholders.
So while administrators are free to make all sorts of deals to satisfy creditors (that can include Directors) and most definitely includes the meeting of their own fees (well earned or otherwise), the only hope for shareholders is to team up and sign up a competent legal group willing to mount a class action on the basis of failures of fiduciary duties and failure to properly inform the market, and in the course of that work, a legal team may gain access to all of the minutes and records of the company and thus determine who was the real beneficiary of the transactions undertaken since the company was suspended. This may open up new opportunities to pursue Directors if any thing they have engaged in is found to be improper or against the interest of shareholders.
Sorry to see what was once such a great company ground down to dust like this by the self congratulatory crowd who took over when they tossed the founders out.
GSL Price at posting:
17.0¢ Sentiment: None Disclosure: Not Held
