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clawmann

03/05/12 9:27 AM

#365352 RE: Large Green #365350

LG: as I posted earlier, there is no one who has any authority at this moment to name or hire a CEO. The Board of Directors must first actually take office (and they cannot do that until the newco actually comes into existence under its new articles of incorporation).

The proper way of handling the CEO isssue would be for the BOD, as one of its first acts, to name someone to serve as an acting CEO to hold that office until a more permanent person can be enagged after a recruitment process has been done. There is a process that must be followed. And that process cannot formally begin until the BOD actually takes office. I bet that we do not see an announcement on the new permanent CEO until April, at the earliest. Doing things the right way takes time.

This same issue came up with respect to the question "Who will serve as the newco's lawyers with respect to litigation funded by the litigation trust?" The answer, rightfully, was "That is a decision for the new BOD; and the new BOD cannot take such a decision until after they formally take office."

Now, obvioulsy, with respect to both the CEO and law firm positions, there are likely candidates right who are interested in being considered. And they are likely positioning themselves to ensure they have a very good shot at landing those positions. But the last thing the BOD should do is just hand those positions to the people/firms who happen to be in front of them right now. Otherwise they may not get the best person available for what they can afford to pay; and they may overpay (no competition); not a way to run a public company.

gophilipgo

03/05/12 11:02 AM

#365371 RE: Large Green #365350

Where did you hear that the new CEO is going to be announced this week or next? Please cite your source.