The shareholders generally elect the board - through votes and then the chairman and board etc will hire the CEO to run the company.
When the debt holders got 70% of the equity they voted in Mr Eugene Davis as chairman - and his job since coming in has been to look after the interests of these debt holders and ensure the company turns around. Mr Davis brought in Cliff as CEO to run the company and be his minion and look after the debt holders interests.
Why would the chairman bring in the likes of Nev Power as CEO? An why would Nev Power join a company whose focus is not on growth and maximising shareholder value but on cash retention and ensuring debt holders get their money back?
Until shareholders elect a new chairman and board the CEO will continue to be Cliffy as he does their bidding.
AGO Price at posting:
2.6¢ Sentiment: None Disclosure: Not Held
