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By Tom Winnifrith | Monday 29 October 2018
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.
Amazingly Mayan Energy (MYN) CEO Charlie Wood survived an AGM revolt led by Richard Jennings thanks to some extraordinarily odd voting as exposed HERE. The key matter is how in the Deloro deal Mr Wood’s wife has made a killing without risking a cent while Mayan itself put up risk capital. As Zac Phillips notes HERE, that is an outrage and I gather moves are now afoot to sue Wood personally over that matter. But Mayan should head that off by taking action itself. I urge all shareholders to write to Chairman Paolo Amarusso NOW using the email [email protected] . Below is a letter from Jennings to use as your template.
Mayan Energy Plc
Tortola VG 1110, BVI
28 October 2018
Dear Mr Chairman
It is apparent that there may have been a significant breach of fiduciary duty by both Mr Charlie Wood and Mr Eddie Gonzalez in relation to the Deloro transaction in November of 2017 and possibly other matters. This allegation merits the fullest investigation.
Typically a director may be removed from his position (either temporarily or permanently) and then pursued by the company, in this case Mayan Energy Plc (“the Company”) where a wrong against the company has occurred., The Company needs to determine a course of action appropriate for Mr Woods, who is still remarkably in situ, and for Mr Gonzalez who has left the Board.
It is the duty of the Directors of the Company to act in the best interests of shareholders and creditors and hence it ought to seek recovery of any monies lost.
Generally, investigation of and proceedings for a breach of directors’ fiduciary duties in these circumstances ought to be brought by the Company itself against the individuals. This is commonly done at the instigation of incoming Directors (such as yourself) and/or if appropriate the remaining directors (e.g. your non-executive colleague).
There are other options available, should it appear to shareholders that Mr Woods and/or Mr Gonzalez have been in breach of their fiduciary duties if this is not being actioned appropriately by the remaining directors including yourself.
The Directors of the Company (past and present) have a common law duty of reasonable care, skill and diligence. This duty attaches to all of the directors’ decisions within any Company. If any breach of such duty occurs, then proceedings for a breach of fiduciary duties ought be bought.
Given the current market capital of the Company, and given the alleged potential enrichment by Mr Woods (and/or his wife) and Mr Gonzalez, of a similar order of magnitude, it seems absolutely critical that the Company investigates and seeks to recover these amounts if there has been any wrongdoing.
Please treat this as a formal request from a shareholder.
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