Anavex Life Sciences Corp (AVXL)

[Steady_T]

Preferred shares can be characterized in many different ways. There doesn't have to be any give away at all. They could be used to generate capital without voting dilution. They could be used to give super voting rights to prevent hostile takeover with no monetary value.

There are many different ways preferreds can be structured. If you don't trust the BOD, vote no.

I'm not wild about giving the BOD that much power either and at the same time I think we have a good BOD. This gives them a lot of flexibility going forward in a rapidly changing environment.

One possibility is that the preferred shares are never issued because the threat of them is there and that threat is enough to prevent a hostile takeover from ever starting.