Management and Advisor's Incentives, page-13

From a legal perspective the Board is under an obligation to determine the best deal for shareholders. If you feel the Board has acted in a way detrimental to and in conflict with that requirement and ignored alternatives this may be cause for a complaint to ASIC ?

I am very concerned that the present Board may get incentives from recommending a particular proposal at the expense of another and a fair process and if true it amounts to a breach of its obligations to us in the process and puts them in very murky waters.

I understand that until the Board looks bona fide at a proposal it will not get serious examination from noteholders . I understand the commercial confidentiality restrictions makes certain discussions difficult. I also understand given court action both the Board and FW have their hands tired in addressing the non disclosures that have upset all of us and been so devastating in impact.

This aside details on things like the specific expertise and achievements of the proposed new members, details on how new markets and customers like India would be pursued and won and why this did not happen previously.The glossy extravagant marketing costs in the face of decreasing cash means assuring investors about Governance issues regarding risk management , and accountability for expenditure .

In 2000 I was told by FW off the back of FEA, Great Southern, Forest Rewards and ITC going under. that he not only had a personal vision and passion for the project but was prepared to put his cash into it and therefore provide reassurance that this would not end up like these. Given this I need to understand why circular financed purchases with no cash involved were provided to people including FW. People are now even cynical that he actually put down a dollar!

Who on earth came up with the risky put options that most of us did not even know about?.I find it hard to reconcile them with the reality of a business where cash is limited for many years .


It is ridiculous to blame FW for all of this given the significant remuneration of others employed to oversee accounting and business operations. However I would be seeking assurances that governance and internal compliance requirements were being reviewed to ensure none of this happens again as well as ensuring full disclosures.

I still believe FW has the best expertise in sandalwood and marketing it and did an amazing job in a short time. His achievement with Nestle was stunning as well his vision with Santalis and promoting further valued added uses for the oil. It took tremendous drive and effort to achieve this.



I cannot come to a meeting but would definitely be interested in listening via a link.