The audit by the indpendant law firm is a total waste of money.
Who cares what their findings are? They don't have any legally enforceable effect - it's just one company's opinion. The review and report will probably cost around $100,000 (knowing how lawyers charge) and will achieve absolutely nothing.
The company needs all the funds it can get its hands on, not spend cash on stupid exercises like this.
The response should be...'Previous Directors of this company may have failed in their fiduciary duty to the shareholders. These Directors have been since been removed from the Company's Board. The Company is now consolidating its financial position and looking for new opportunities and partnerships with other companies in the industry. The Company looks forward to new ventures with a revitalised Board of Directors and a new direction.'
