Well now that we have been mugged ...I guess that the IMF IRAQ Corporate Governance team would like to hear what's happening to companies like GKP.. This will help the KRG pledge for more funds and gain international recognition quicker and increase its capacity building by attracting more oil companies to come and also invest in infrastructure to help support its population...what goes round comes round ...I personally would no longer be reading the future sections on GKP Corporate Governance Report : the current one on Page 55 reads : One of the Board's primary responsibilities is to ensure that the Group is run in the long -term interests of our shareholders and wider stakeholders...what a waste of salaries being paid each month ...I hope shareholders are taking time to write to authorities ..thanks every body for sharing their knowledge ....This is the link to IMF IRAQ....I hope the corporate governance team of GKP write to them too....every little help counts!
If the proposed restructuring gets the go-ahead in Genf, non-bondholders may hold as little as 5% or as much as 14% of the issued shares.
In a worse case situation they will essentially have no voice in monitoring the affairs of the company and no say in disagreeing with decisions made (for myself I do not consider Capital as the effective conscience or voice of the smaller shareholders).
It's also to be expected that the new majority holders (as yet unknown) will purge the BOD and have their own people put in place - both main board directors, Chairman and as non-execs too.
In the interests of fairness, and in view of the proposed tremendous dilution of shareholder "voice" staring us in the face, it therefore seems to me that some form of Shareholders Agreement be agreed ASAP in order to protect minority shareholders from future abuse by a self-interested majority. There is still time for a motivated CEO and his legal team to get this done, if not before the SGM then certainly before the AGM.
Considering the massive dilution and loss of voice I'm surprised that JF has not already proposed such a course of action.
I'm and engineer not a lawyer, and I do understand these agreements are generally more common and suited to smaller shareholders groupings and private companies, but I urge you to consider the idea and, if you consider it worthwhile, act on it in the way you best see fit.
For myself, I've written to several heavyweight newspapers about this.
Google "Minority Shareholdings and Shareholder Agreements" for a flavour of what's possible.
This little gathering of people who feel a bit hard done by will hold absolutely no weight whatsoever....And good luck with that journalist. In the meantime, if you polish up on your financial research and maths.....it'll be of a great advantage when you're considering the next duffer to buy.
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