It bothers me deeply when the chairman of a company resigns...

It bothers me deeply when the chairman of a company resigns after only a couple of months, particularly with this woman's background and track record, when she also happens to be the largest shareholder, and also appears to have contributed much the recent funding.

The board used the ASX as a public platform to tell their side of the story in today's ASX release, but I cannot help wondering what the other side of the story would be if we were able to hear it, and whether there is more to this than meets the eye.

Having agreed to take a board position and contribute funds, once you get inside a company, things can sometimes turn out to be very different to what you thought you were committing yourself to at the outset.

I can imagine any number of possible scenarios, eg:

1. You find something you don't like behind the facade of credibility, and would rather have your money out with profits and your reputation intact.

2. You suddenly find yourself holding a huge speculative profit, against a situation that, despite all the froth and bubble, has a far from certain outcome, and you would like to be free to sell

3. The company's share price and trading volume has taken off in a manner that is out of all proportion to the stage of its exploration and it's public announcements (most of the salient points of which had been known for some time); you are asking questions and not getting clear answers, and you are starting to wonder if your reputation might be at hazard.

As a result, you are not looking for much more reason to resign, sell and take your profit, and so if the board renege on a previous undertaking to you, which had been offered to you as an agreed inducement at an earlier stage, you resign at once and are then free to sell take your profit.

This is pure speculation and mere devil's advocacy on my part, but I cannot help wondering.

I mean, as Chairman, one would presumably know the reality of the project's success potential far better than any outsider reading ASX releases.

And yes, the desire to obtain the placement at the legitimately-calculated but denied placement price, does look like a sign that she knew the project was a definite goer: She was certainly keen to put in another million bucks of her won money.

But maybe it was just that the market price looked unlikely to fall that low again in the near term, and maybe a subsequent resignation and selling was on the cards anyway.

Either way, having exited and freed herself to sell, and having given up access to any further direct working knowledge of the company, the temptation must be for the former Chairman to sell down her holding and take what is a very considerable profit.

Whether she does or not will speak volumes about how this project really looked from inside the company fence whilst she was there.

Anybody else have any inklings?

(Pay no attention to my musings though. I am not a financial adviser and they are not intended as financail advice)