Wednesday 15 May 2013

CPO minutes - legal costs outrage

The latest minutes of the CPO board meeting can be read at the link below. But some of the content is depressing and alarming;

Extreme concern was expressed by all at the legal
 costs incurred by the recent responses to the S793 letters and follow up responses and queries. The bills will be reviewed and discussed with Stephenson Harwood0(SH) by GS. Of the bills incurred 60% were in relation to queries and matters raised by a single shareholder"

It seems that the board is often beset by a very few individuals who, with conspiracy and malice a forethought, insist on pursuing blind alleys and fruitless diversions. As if the shenanigans of the recent letters (acquiesced to by the board despite their advice that it would be pointless) is made all the more perverse when follow up questions have resulted in even greater costs.  It seems wholly inappropriate that a single shareholder should be so able to threaten the precarious financial situation of the company with picturesque showboating and embroidered bar room legal pursuit. We would suggest the board do whatever they can to prevent this happening again and to put the brakes on this person.

Shareholders need to realise that the company is in serious danger. If a minority of shareholders continue to chuck mud and insist that CPO carries the cost, there will be NO CPO in very short order. Quite a few people are beginning to see that as something of a positive outcome and that has to be the height of irony.