A case of a Cliq and a Sona!

One of the standards that is used to assess the action of directors in discharging their duties is to judge them on par with the ordinary man on the street with similar qualifications and experience.

So today when I read in the newspapers that Cliq Petroleum was seeking a judicial review of the Securities Commission's rejection of their Qualifying Asset, I could not but feel elated, congratulations to the Board for this action.

Its about time that the regulators are challenged in their decision making. Too often the regulators sit on their high chairs and make decisions with impunity, totally ignoring their own edicts.

What puzzles in the case of Cliq Petroleum is that the SC had rejected their qualifying asset (and I am sure for many good reasons), I would not had anything to say if they had responded similarly in the case of Sona Petroleum. However with Sona I found it very peculiar that there is a sweetener (in the form of Capital Repayment) to the shareholders, that  is conditional on them approving the QA.

Hold on now, conditional on approving the QA, is that not(to the ordinary man on the street) sounding like a threat or bribe, er is that not shareholder's money in the first case. If the QA is so wonderful why the need to do this, if the QA is so wonderful and a sure winner, why not return all the shareholder's money and the director's borrow from the bank in their personal capacity. I am sure with such a good deal, the banks would be falling all over themselves wanting to lend, the directors and bankers can earn lots of money! However what is intriguing in all this is the fact that the Securities Commission is silent, pin drop silence some might say! 

So moral of the non action/action to us ordinary men on the street is that what is good for Sona is not good for Cliq. Thinking aloud, I wonder if I buy shares in Sona and it fails I could sue the SC, since by their silence one could assume that there is nothing wrong and that they are indirectly supporting the proposals by the Board and Management of Sona.

Yes  silence does not mean acceptance et al but there is a relativity test that I am sure a smart and crafty lawyer can use.