Replies to post #70875 on Medinah Minerals (MDMN)

[Hurricane_Rick]

BTW the only reason JJ had control in making a partner decision is because the BOD gave it to him. I say that was very stupid from the start.

Technically it was the shareholders who gave JJ full control to negotiate a JV deal on Medinah's behalf. It was voted on by shareholders in one of the AGMs during the mid-to-late 2000s. I'm sure the minutes are out on the internet somewhere. Granted, the BOD probably held a majority vote at the time, but technically it was approved by the shareholders. Whether or not this was a contentious proposition at the time or not would have to be reported by an older shareholder who was at that AGM...I have no idea. Regardless, at the time Medinah really had no choice in the matter. The company was in a mess from the fallout of the Bermuda Shorts sting, they had defaulted on payments and had lost all of their ADL claims. JJ had essentially rescued the company by reorganizing it, paying to hold its ADL claims and outstanding debt. So while giving JJ control to negotiate a deal on Medinah's behalf may seem "stupid", in hindsight the company really had no choice but to trust JJ to get them out of the mess...or wind up closing the doors.