ISX fall from grace on allegations of improper governance around the issuance of performance shares to its directors, is truly unfortunate and holders took a beating this morning and since hitting a high of $1.77, has dropped 57% to 76c.
The reason why governance standards are not high is because there is no properly established rules around performance shares - we have seen so many microcap stocks issuing performance shares that have been based on poorly structured hurdles set by the boards themselves and easily subject to manipulation to enrich insiders at the expense of retail shareholders. I have often said to be wary of companies that have been using performance shares to pay their directors - YOJ/ BUD / BRN / LVT , yes the ones that dont deliver.
