"Re-appointed" would have been a better word than "re-elected". However, it does feel like we're heading into an election at the AGM. The problem is that the only guidance that we've been given, as to what Richard would like us to do at the AGM is to vote against the re-appointment of Fowler, Arnett and Hartwell.
Regardless of what you might think of them, it's no small thing to ask shareholders to roll three members of the Board. I don't have a copy of the NXS Constitution. Even if I did, I would still be wanting further guidance from Mr Cottee as to the following:
1. What percentage of the shareholder vote is needed to defeat these resolutions? Is its >50%? Or 75%? Or something else?
2. Assuming that the three directors are not re-elected, what happens next? Will a shareholder propose a resoultion to appoint others in place of the three deposed directors? If so, who are they?
3. If the three are not immediately replaced, will the remaining directors constitute a Board? Or will NXS be left without a Board?
4. If NXS is left without a Board, are there any knock-on effects on NXS's exploration permits? Or on NXS's financing arrangements? Will financiers be entitled to declare an acceleration event thereby causing all amounts owing to become immediately due and payable?
I'm sure all this has been thought through and more. No doubt there's a grand plan but with 2 weeks to go until D-Day, it might be time for Mr Cottee to start sharing the plan with the common or garden variety shareholders.
NXS Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
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