stinks and corporate governance

This will be my last posting on this matter.

Apart from some reservations about the timing, I have no real objection to the proposed 1 for 10 Rights Issue. Each shareholder has the opportunity to either, reject his or her entitlement and thus suffer the resultant dilution of his or her shareholding, or to take up the full entitlement and more if wanted or available.

However, as regular readers will have gathered, I am greatly concerned about the proposal to grant an open-ended right to the Board of Directors to issue themselves 12 million shares, and 58 million shares to other shareholders at a price of 8c per share. I suggest that the proposed criteria to be used by the Board in selecting these other shareholders, has been deliberately left vague and is questionable in the extreme.

The Annual General Meeting for Bounty will be held on 29 November 2010 at 11.00 am at Amora Hotel Jamieson Sydney, 11 Jamieson Street, Sydney. Proxies need to be delivered in a timely fashion.

I strongly recommend that all shareholders vote against Resolutions 6, 7, 8, 9 and 10 at the AGM.

In my opinion, it is essential for the protection of ordinary Bounty Oil & Gas shareholders that this unprincipled, unwarranted cash and power grab by the Board of Directors and their cohorts, together with the resultant dilution of shareholders not able to get shares at 8c, be defeated resoundingly.

In passing, I take this opportunity to remind the Board of Directors of Bounty Oil & Gas of Directors' Duties and Liabilities under the provisions of the Corporations Act 2001 (As amended)