pigs at the trough

In the aspiring RE’s Bible “ Pigs at The Trough” page 86 we note;

In May 2008, Jenny Hutson’s Wellington Capital acquired a call option over MFS Investments Management, the responsible RE of PIF and several other MFS funds.

While the deal appeared to have all the hallmarks of a related – party transaction (no other interested parties would be permitted to conduct due diligence on PIF), MFS did not seek share shareholder approval, nor did it obtain an independent expert’s valuation on the sale.

While the MFS board approved the sale, such auspices would not have been difficult to obtain given that three of MFS’s five directors had close links to Hutson (MFS boss Chris Scot was even a former owner of the investment advisor).

Note * The new board of Octaviar Investment include Hutson, Robert Pitt and Craig Wallace.

Shortly before Wallace had been part of Chris Scott’s “ticket” for the MFS board.

In the space of less than two months, Wallace had gone from potential co- director and close associate of Scott to a director and a supposedly independent company that had been sold at “arm’s-length” basis.

Well, where is ASIC in all of this??.