Replies to post #161355 on Plastic2Oil Inc (PTOI)

[Toxic Avenger]

"If there is something there that doesn't make sense, it is the idea that a genius felt that he could acquire something with a purported value $9,997,134 for something with a known market value of $1,000,000."

That says it all, doesn't it LR. Thanks for the insight.

[Johnik]

I thought that you would understand this (of course it's a sentence...it was missing a comma):
On 8/24/09, whatever due diligence that his fiduciary duty as CEO required prior to signing the agreement letter was woefully inadequate, irresponsible and incompetent in that it should have resulted in his awareness that the "media credits had no value" and failed to do so.

It still is not a sentence. The "[o]n 8/24/09" needs to relate to something. Anyway, this is not important to me so long as I can understand your point. In that regard, you rephrase:

The CEO has a fiduciary duty to shareholders to perform a measure of due diligence prior to entering into any material agreement on behalf of the company. On 10/20/10 the legal firm representing the company acknowledged in a letter to the SEC that "the media credits had no value and should be written off".

Did John Bordynuik have the obligation to ascertain the value of the media credits, later acknowledged by him to have no value, prior to signing the letter agreement on 8/24/09?

My response is yes, the CEO must perform due diligence prior to entering into contractual arrangements, including ascertaining the potential worth of such contracts/assets acquired. These matters are ordinarily left to the sound discretion of the corporate officers, save for abuse of that discretion (see the so-called "business judgment rule").