the shareholder update 13 november

This morning's post from RC:

"It is pleasing to see that the Nexus Board is finally directly recognising the shareholders’ ownership of the company by writing the Dear Shareholder update posted on their website, but not the ASX website. One is tempted to be cynical and state that this is because they have only engaged with “several of the top 20 shareholders” but perish the thought. I thought I should throw some light on some of the matters raised in the update.


As I have stated a number of times, I did resign from the Board of Nexus but not a role at the company (I was willing to remain CEO) at 8:08 pm on 21st September. At around 9 am the next morning the Chairman asked me to step down from all of my roles at the company. Contrast this with the company’s earlier versions of my “sudden” and “unexpected” resignation. It is difficult to remember what version the company is up to. Truth has a consistency, spin has many twists.


On the Echuca Shoals transaction aborted by the Board, the Company omits to inform the shareholders on the Key Man issue that I had offered in writing to personally indemnify the Company and the Board (from my not insignificant assets) against the possibility of my resignation prior to its fateful decision. The Key Man could therefore only be triggered if the Board intended to dismiss me, and they talk about signalling intentions. The potential contingent liability they state could only come about by a reckless indifference to risk or a cognitive desire to maximise exposure. I pointed out how that exposure could easily be covered. I am prevented by confidentiality (at this time) from going further.


However, to clarify, the Key Man insurance for this project was required by the Counterparty and is common practice for this type of project. The proceeds (if it ever came to that) from the insurance would belong to the Counterparty. Of course there is nothing to prevent the Company from covering this risk and I had offered to underwrite it. The Company also omits an important fact that the Echuca Shoals transaction was recommended to the Board by its independent advisors.


It is interesting to note that the recent share price rally coincided with reports that I have the numbers for an EGM. The board claims credit. Do they also claim credit for the 40% increase following the announcement of my appointment on 19 April last year, the over 50% instantaneous drop in share price following my removal and the entirely “co-incidental” rallies subsequently every time the rumors of the possibility of my return look more likely. So much for their “informed” market judgment.


It is clear from the letter that it has finally dawned on the Board that real Board accountability is a possibility. The wave of shareholder activism on Board accountability at recent AGMs of other listed companies is a testament to this. They are pleading with the shareholders to withdraw or vary proxies! Hold firm and hope. We must “Find a Path” to put the Company on a sound footing. If in doubt, I would ask you to abstain, specifically from voting on the crucial questions of the re-appointment of Messrs Fowler and Arnett.


Let the light shine."

I'm personally with him 100%!