Grgo,Corporations Act is very specific on conflicts of interest...

Grgo,

Corporations Act is very specific on conflicts of interest and related party transactions. There is little doubt this was a questionable deal that was NOT arms length. If the directors obtained an independant valuation of the assets before purchase than this is fine (although a ridiculous deal anyway). If they did not get an independant valuation then this issue may cause problems.

You say that directors are accountable to shareholders. Agreed. However if someone complains to the regulator about this they may find shareholders are not the only ones questionig their deals.

$3 million for a $650 tenement.

It makes no difference to me however I do not like seeing these related party transactions rob share holders of wealth.

I would like to hear from Tolli or Fingermark who are closer to the action. They may have a proper explanation for the deal and I am just paranoid.

I am the Iceman!