Yes, last resort but it is a very real proposition if we go belly up.
These checks and balances are in place to allow shareholders to check the probity of Board and Senior Management and if need be test them in a Court of Law.
Their fiduciary duty to shareholders is paramount.
These things can drag on for years Mauro.
I am still fighting a class action against Gunns and more specifically against its CEO John Gay.
IMF are going after him anew after they did a discovery on his Directors Insurance. The insurers can be liable for his defaults if they fall within the policy definitions and apparently they do.
It is very slow and difficult though. Even though John Gay admitted, was found guilty, and convicted of insider trading IMF are still in an uphill battle despite that.
However even after more than 3 years IMF still won't let go and are still pursuing him on behalf of shareholders.
It is not up to us to presume the guilt or innocence of Newsat Directors, etc. but as there is a system in place we would be remiss in the responsibility to ourselves not to test their actions if a Company skilled in these matters felt they had a case to answer.
We are all accountable for our actions and the Board is most certainly accountable for theirs. Presumably they have had this in mind throughout their tenure and as a result have nothing to fear.
However that is putting the cart in front of the horse. We are certainly not at that point yet by any means.
I don't see an immediate resolution directly after Easter so we will still have a bit of a wait.
GLTASH
NWT Price at posting:
11.5¢ Sentiment: Hold Disclosure: Held
