MMEX Resources Corp (MMEX)

[jmjjw]

MMEX, no independent directors - another jewel…

This is from MMEX’s vaunted S-1A (finally declared effective after six filings), page 51, “Directors, Executive Officers, and Corporate Governance:"

The Board of Directors has determined that neither director is “independent” as such term is defined by the listing standards of Nasdaq and the rules of the SEC. Mr. Lemons is not “independent” due to his significant beneficial ownership of our common stock. Mr. Hanks is not “independent” due to his significant beneficial ownership of our common stock and his role as an executive officer of the Company.

Real public corporations have a board of directors. That board includes outside, independent directors. These directors have finance, legal, management, and other advisory skills, and the board acts in unison to protect and balance both company, and shareholder interests.

MMEX has no independent directors.

Real public companies have compensation committees, governance committees, and advisory committees, which include outside, independent members. This is a fiduciary responsibility to the shareholders, and to protect the company itself from questionable, insider-driven decisions that may run counter to regulatory, statutory, or other imperilment.

MMEX has no corporate governance.

This is a related excerpt, from page 52 of the S-1A:

Audit, Nominating and Compensation Committees

Because we are not listed on securities exchange, we are not required to establish audit, nominating or compensation committees of the Board of Directors and we have not done so. In the event we elect to seek listing on a securities exchange, we will meet the corporate governance requirements imposed by a national securities exchange, including the appointment of an audit committee, nominating committee and compensation committee, the adoption of charters for each such committee and the appointment of independent directors to such committees as required by the requirements of such securities exchange.

MMEX uses the excuse that it is not listed on “securities exchange” to side-step normal corporate structure, and responsibilities, which are designed to protect shareholders and the corporation itself. MMEX lacks an audit committee, nominating committee, compensation committee, or any form of traditional corporate governance.

These elements of corporate structure, in real businesses, protect shareholders from bad insider decisions, usually self-serving. A good example is MMEX’s recent decision to increase its A/S, to continue running the share printing press fueling toxic debt, at the expense of MMEX’s common shareholders (i.e. public market investors). In a real corporation, this sort of thing would never happen.