MFS Board -
Issue 1 - Incompetent or Not?
Issue 2 - General lack of Communication and Openess to those who own the Business (ie The shareholders)
Good Afternoon All,
As a MFS shareholder I fully support the actions of Chris Scott to call an EGM (Extraordinary General Meeting) for MFS. I believe he is acting for the best interests of the company and to protect what little is left of his once substantial investment. Other MFS shareholders are in the exactly the same position as Chris. We have all lost serious money.
Based on the AFR article this morning 15 Feb 2008 if the meeting with CEO Craig White and Mark Korda did occur on Australia Day - 26 Jan 2008 and an alternative funding structure was discussed and it wasn't given due consideration then there is something very very smelly going on in the management of MFS. There are also serious questions now over the integrity and competence of Mark Korda, KordaMentha. Why have shareholders been kept in the dark deliberately by the MFS Management Team and the MFS Board over this alternative? Why was the critical alternative funding option ignored and MFS's only decent asset Stella sold (65% of it) at a fire sale price without a vote? Why do we have to read about an alterative funding option in the AFR today? MFS is supposed to keep their shareholders / owners informed.
Directors and the Board of MFS have a Statutory Requirement to act in the best interest of the company MFS, NOT in their interest of themselves or to act to protect the MFS Board's reputation or to act in a way to hide past failures /mistakes.
I note the recent resignation of Mr Taso Corolis, Head of Risk and Compliance. Is the above issue one reason for his departure?
The MFS Board is clearly inept and have let the MFS management team (controlled by CEO Michael King) drive the company MFS into a fragile financially perilious and troubled state buying any asset King wishes on credit at a stupid price. This has clearly not happened over the last 2 months. It has occurred over the period of time, possibly 18 months. Peacock and his fellow wallies should leave MFS now. They do not deserve the support of the shareholders. They have failed in the past and have now little to offer shareholders (small and large), except selling MFS assets at fire sale prices which further weakens MFS. Their financial ability and credibility are 100% shot to pieces. I believe the subprime crisis is an excuse used by MFS management to deflect their incompetence.
An example (reference AFR 14/2/08) - Circle on Caville complex. MFS paid $110M. MFS is now seeking $80M for the Building. REAL SMART MOVE. Potential Capital Loss to the company and it's investors is $30 Million. Clearly the Board approved a significant purchase that was well beyond true market value without due diligence. You could say a complete moron would do this, not someone supposedly competent being paid $200,000 pa sitting on a MFS Board to oversee the company such as Andrew Peacock.
The lack of openness and honesty to MFS shareholders is clearly continuing as demonstrated by this alternative funding option not being considered or even offered as an alternative to MFS shareholders.
Why am I still an investor in MFS (and have lost over $28,000) because the management of the company on the 14 January 2007 stated to the ASX in an announcement that basically all was well and there was no information to justify the share price fall. What total crap that was.
In the light of MFS's current state, this statement has proven to be substantially false and misleading. I consider MFS management essentially misled its shareholders and the Investing public of Australia over the serious financial status of the company. The true debt level was not released until after the 18 Jan 08 (the last MFS trading day). Will the ASIC do anything? Not a chance.
I was on a short January holiday when MFS crashed. Any rest or joy from my holiday was totally destroyed when I returned and saw MFS shareprice at 99cents on Sat morning 19 Jan 08. I remain highly stressed. I have not and will not tell my wife because I do not want to cause her pain and distress. Our plans of purchasing a house are now postponed.
I remain very very angry and I feel for all fellow shareholders caught up in this disgraceful mess. I'm sure other shareholders are equally gutted and seriously affected. I will also be forced to work for another year because of this fiasco. I may not have a retirement. Does Andrew Peacock or Craig White really give a dam? I doubt it.
regards and best wishes to Chris Scott. Chris has my full 100% support.
I sincerely hope Chris Scott is voted onto the MFS Board even if the Stella sale can't be stopped.
All investors want value restored to the company not more Wealth Destruction and Incompetence. The current MFS Board is a joke. It has to go for MFS to have any future.
best wishes to all investors
Phil
Current Position - HOLD (I can't sell even if I wanted to)
MFS
mfs limited
