snouts in the trougfh ??

Unless I am completely mistaken, I was under the impression SEG is a junior exploration company with minimal cash resources ($1.1m as at presentation of 19th Feb'14) and is supposedly focussed on exploration activities.

Again, unless I'm reading the resolutions for the proposed general meeting incorrectly, resolutions 5 to 8 appear to seek approval to give the 4 directors the option to take up 165m shares @ .00877c per share within 12 months of the meeting date using funds (total of $1.447k) that is to be provided by the company to enable the directors to pay for the shares !

The new shares will dilute existing share holders by 11.6%

The money to be lent by SEG will be for a term of 3 years, interest free and the directors will not be personally liable for the loans to be provided by the company - good luck trying to get Bank terms like this for a loan !

Maybe we should change our name to Easy Bank and forget about exploration !!

Part justification is - the shares will only be issued upon the directors meeting certain "hurdles" - the major ones being :-

(1) identification of 3 ground EM conductor targets by 31/12/15

(11) completion of amalgamation or farm in of 500km2 of tenements in the Fraser Range area by 30/6/14

(111) completion of cash raising of $4m at a minimum of .007c by 31/12/14 - the directors have obvious incentive for this as they need to raise the cash to pay for the shares not for doing work on the ground - or approx. 40% of it anyway !!

(iv) the company having a market cap of $20m for 20 consecutive days by 30/6/15 - this date seems wrong since the shares have to be taken up within 12 months - so it should be 18/4/15 ?

I would have thought all of these "hurdles" would have been within the directors' existing duties in the normal course of employment - ie you are employed to do a job - without having to be especially rewarded above & beyond their existing remuneration.

Only one director appears to have any shares so they don't appear to have much skin in the game at present unlike us share holders.

The company states some shares being issued is contrary to Recommendation 8.2 of the ASX Corporate Governance Principles & Recommendations but even that hasn't stopped them seeking approval.

I'm not sure whether being angry is the right word and am happy to be corrected but I think these resolutions are way over the top and would appreciate your thoughts & views.