Replies to post #32605 on China MediaExpress Holdings, Inc. (fka CCME)

[floridahockeyman]

Thanks for the detailed reply, Andrew. It is appreciated.

I don't think we disagree fundamentally with the sole exception that you believe it easier than I do for CCME to have secured an independent director for the audit committee. You could be correct, of course, but CCME was highly toxic at the time, Zheng was (apparently) still resisting forensic audit proposals from the likes of Lam, Dong and Kung, DTT had resigned amidst a surfeit of fraud allegations (and tended to support those allegations with its communications subsequent to the resignation), lawsuits had been filed against the company, its senior mgmt and directors, and all conceivable hell was breaking loose at the time. I don't think it would have been very easy for Zheng to engage a suitable independent director to serve on the audit committee under those circumstances.

BTW, I don't disagree with your belief that Zheng violated his fiduciary duties to SHers. In fact, I share that particular belief. However, I view his behavior in two distinct time periods: before Piper/PWC and after Piper/PWC. No question in my mind that he violated FDs in the former. With Piper and PWC still on the job 39-40 days later, however, I suspect that he has had his "come to Jesus" crisis, collected himself, and perhaps is realizing that his only honorable option at this juncture is to allow the forensic audit to be completed, and embrace -- or at least live with -- the results and recommendations that will flow therefrom.

JMHO.