True. Currently CTI is in a position that allows any person to document with certainty a number of wrong/false information sent to the SEC and/ or disseminated by press releases. This information, either before or after the appointment of Conrad Mir, have certainly distorted the value of the company and the status of its contracts. This does not appear to be legal.
More generally, it is not credible that after two years of different information sent to the SEC and many press releases, the CTI Board notes that JJ, its CEO, had no authority to sign contracts.
However even if we wanted to believe the unbelievable, the result is that for two years the stock market has been deceived over the lease term, in this case falsely extended to five years. An increase of 5 years has completely changed the value of the company, and all the decisions that the investors had make on this data.
It is clear that in any case the company is always the subject legally responsible of the actions of its employees, of its board, and of its CEO. Internal issues on the various powers assigned by the Board, or the lack of control exercised by the Board on the legality of the agreements, does not affect the legal liability of the company outwards.
If instead JJ had all the necessary powers to sign the agremments (as actually seems from the documents submitted to the SEC and more), or simply the Board was fully aware of the actions of its CEO, it is clear that CTI is acting in a situation of complete lawlessness .
In both cases the delay of the report to the SEC does not seem to be the most serious problem of CTI in case of a SEC depth investigation.
