election of director - gerry pauley

Well, CMI have just issued the Chairman's letter and notice of annual meeting, and Gerry Pauley has now formally thrown his hat into the ring in nominating for a position on the Board.

Gerry has provided some personal background, but already the Board is on the defensive. Consider:

"The following information has been provided by...(Gerry)...and the Board does not necessarily agree with the views expressed therein."

Now, what is it they don't agree with?

- That Gerry has been an active investor for most of his life, involved fulltime since 1995?
- That his "Australian Stocks and Shares" won an award for Most Popular Australian Web Site?
- That in recent years he has taken three cases to the Takeovers Panel?
- That he challenged and succeeded in having a Scheme of Arrangement denied?
- That Gerry served on the WA committee of the Australian Shareholders' Association for seven years?
- That he has a Bachelor of Science degree from UWA?
- That he gained a reputation for challenging poor behaviour on company boards?
- That since the current Board took control, the dividends have been cancelled?
- That both shareprices have collapsed?
- That Gerry believes shareholders other than the largest shareholder should have representation on the Board?
- That he plans to do what he can to obtain restoration of dividends?
- That his nomination allows for shareholders to decide whether to achieve dividend restoration from inside or outside the Board?

The Board has mentioned "The Company has not independently verified [Gerry's] information." Maybe that's where they should have stopped. But until such time the Board can specify which of the above they disagree with, then their opinions aren't worth the paper they're written on.

Just like the value of many, if not most, of the opinions they have expressed since joining CMI.

I for one cannot remember having come across in any Explanatory Memorandum, the making of such mention about the views of a person intending to seek Board representation.

And this is just one more reason why somebody like Gerry Pauley needs to be elected to the CMI board.