Drone Services USA Inc. (DSUS)

[Cassandra]

If the company receives certificates returned to its treasury, it can cancel/retire them through its TA. There is no agency that needs to be involved.

The cancellation of outstanding shares held by outsiders is not an involuntary process. If the company were to cancel or put stop orders on legitimately-issued shares, it could face litigation. Apparently the 500 MM shares were voluntarily surrendered, which is a different situation.

Even in this case where the company claims that hundreds of millions of shares were illegally issued by the TA, it still needs to have proof and likely go through a proper legal process before they could be involuntarily cancelled.

Keep in mind that these shares could only have been issued by the transfer agent in conjunction with an opinion letter written by an attorney representing the company.

If this supposed fraudulent excess conversion happened the way the company claims, there would have to be co-conspirators such as attorneys and the TA, both of which are considered "gatekeepers" to protect against such fraud. They could face SEC sanctions and bans if they erred or conspired to commit fraud.

Why isn't the company taking action against these parties who would have had to be involved?

I'm still skeptical that this supposed excess conversion happened without any knowledge by the company. There are too many holes in the story. It's inconceivable to me that they would continue to use a TA who issued excess shares, even if there were bogus opinion letters the TA relied upon.

A more competent and transparent TA who could go through the records of the current TA to straighten out the situation would be much more appropriate, assuming that this alleged fraud actually did occur.