By Tom Winnifrith, The Sheriff of AIM | Tuesday 10 October 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Well it is now official. It is perfectly acceptable for the chairman of an AIM listed company to take $2.4 million of a company's cash without permission. You and I would call taking someone else's (that is to say shareholder's) money theft or stealing. But on AIM it is simply an unauthorised loan. Pas de probleme mes amis!
Welcome to the world of Mytrah Energy (MYT) which has announced:
The Independent Members of the Board have been advised that a loan of US$2.4 million was made in early September 2017 to the Company's Chairman, Mr Ravi Kailas, for the purchase of a property which is not related to the Company's operations. The loan was made without prior approval of the Board. Mr Kailas has made arrangements for the full amount of the loan to be repaid by the end of next week.
As a consequence of the above, the Board intends to engage an independent law firm in order to assist in a comprehensive review of the transaction. Following completion of the review, the Board will update shareholders.
Look fucktard NEDS and Nomad Investec this is simple. If you take seven figure sums out of the bank account of a PLC without permission then however you dress it up that is theft. Mr Kailas is a therefore a thief.
On a normal stockmarket you would say that being a thief meant that you failed the "fit and proper person" test. But this is AIM where companies have been run by folks with outstanding arrest warrants and currently active insider dealers. So I guess adding a thief as chairman to the party is just par for the course on, what describes itself, as "the world's most successful growth market."
Never miss a story.
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments are turned off for this article.
Search ShareProphets |
Stock market news |
Recent Comments |