Being a taken over ex MYG bod, makes me a new kid on the block on this DRM site. Hence my maiden post which is about still lingering MYG baggage. My understanding is that in a takeover all the outstanding affairs of the retiring company, warts and all, are transferred to the new owners so to speak. This post is about possible monies outstanding.
MYG posters will know this saga well, so I will be brief, and leave it for fuller details to emerge should a discussion take place.The salient points;
1) In 20011 the MYG board decided to prematurely supersize its remuneration ( CEO - circa 500k package ) to which there was a highly charged shareholder / poster backlash.
2) Board response - engage expensive lawyer jack boots to conduct a witch hunt on HC to root out dissent.
3) legal fees we can only assume were paid out of company funds, as a company cheque for $1,100 in favour of HC for their forced indulgence was displayed on this forum.
It has never, despite repeated calls been revealed, how much of company funds was squandered on legal fees in pursuit of this matter. Taking into consideration that the legal firm was the same as the one engaged to pursue some EGO shareholders for supposed defamation at incurred fees of 460k, the amount involved here could be anything from $1,100 to considerable.
The EGO action blew up, and the courts found that the directors were liable, as company funds could not be used for private purposes which a defamation action is. This was a game changer as you will have noticed that immediately afterwards the HC fighting fund ground to a halt. A major achievement for the public shaming power of HC.
DRM has inherited this stain. Will the board have the good sense to clear the matter up and if appropriate pursue former MYG directors for any monies misappropriated in this manner? Former MYG ers are tired of this weeping sore and would like to the matter resolved forthwith so that we can bury the past and concentrate fully on the prospects which our newly adopted company has to offer.
As a note to the board. This matter has festered for more than 3 years largely because the tactic of a wall of silence has not worked.
DRM Price at posting:
48.0¢ Sentiment: Hold Disclosure: Held
