"See how simple that is...well its not so simple because Loneranger posted he thought that Seth in saying the company was not going to enact the RS went over the boards head and even though they approved it he was not going to act on it."
Say what you like about me, but for pete's sake at least spell my name right :o)
Here's what I said...
"There's no indication that the Board of Directors withdrew that approval. Rather it seems that Management took it upon itself to ignore the Board's action:
"the Company has decided that it will not enact a reverse stock split""
...and here's what the release said:
"the Company obtained Board of Director approval for a 1 for 8 reverse split under the condition that its authorized shares would also be reduced by the same ratio".
I didn't just post that I "thought that Seth in saying the company was not going to enact the RS went over the boards head and even though they approved it he was not going to act on it"...that's exactly what the release said. If the Board had agreed to refrain from executing the RS that would have been a good thing for the release to mention. It didn't.
Would the minutes show that their approval wasn't just contingent on an equally proportioned reduction in the authorized shares but also that, after carefully contemplating the available options, management would be free to ignore the obvious intent of their approval? Would the actual language of the resolution....that's the way this is usually done by the way, by resolution (there was a written resolution, right?)....make it clear to a reasonable person that the action approved was to be undertaken at the option of the CEO or however "The Company" is defined?
You have to admit that this has been a strange process. They could have simply issued a press release that said "The company has decided not to execute a reverse split." There was no need to report the Board approval. There was no need to state that their approval was conditioned by a proportional decrease in authorized shares.
It's like the whole TAUG power structure has been testing the roll-on to make sure there's not so much THC in it that it draws the attention of regulators.
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