Posted elsewhere11 Feb 2021 13:04
Worth a read with a whisky or two!
From the other site:
“In June 2017, Mr. Mamulaishvili, at the time President of FRC, insisted that he would no longer make an effort to ensure FRC’'s continued success unless FRC’'s then Chairman, CEO, Steve C. Nicandros (”“Nicandros”"), stepped away as CEO and allowed Mr. Mamulaishvili to hold the title of CEO and President. Thereafter, Mr. Mamulaishvili held the board hostage to his way of operating and continually threatened that if the board members did not accede to his way of doing business, he would allow the Company’'s business to fail in Georgia. Insubordination by Mr. Mamulaishvili was commonplace in response to board requests for information. Further, Mr. Mamulaishvili became extremely frustrated by having to interact with the Company’'s Board of Directors by responding to commonplace inquiries as is typical in a situation where the Company is also governed by a board. Mr. Mamulaishvili’'s conduct resulted in the creation of tension with board members. As a result, one board member resigned and another not only resigned but also sued FRC.
Unbeknownst to FRC at the time, following Mr. Mamulaishvilii’'s position as CEO, he began engaging in a series of malfeasance and misfeasance which ultimately required FRC to remove him from his position on August 28, 2020. FRC gradually began learning of questionable conduct by Mr. Mamulaishvili which ultimately led to his removal."
It rambles on with legal submissions but firmly and squarely lays blame against ZM for pretty much everything. Clearly a falling out between him and the rest, driven by his actions but it begs the question what prompted ZM to act this way.
This is probably the best insight we’ve had into the company for a while, since the revelations of subsidiary companies being created in order to avoid seizure by receivers acting following Cayman Islands actions. That raises the question, who was behind those actions and whether they were aware of ZM’s behaviour at that time. The motion to stay indicates reasonably well, that is not the case.
ZM was brought on board with his reputation and connection/understanding of Georgian business to grease the wheels and smooth the way forward for what was once determined an incredible opportunity, potentially with oil and gas to match that of the Shah Deniz field operated by BP. His future would have been secured and had he achieved that he would have likely wanted for nothing, being the ‘main man’ on the ground in Georgia. Transitioning and connecting the country, whilst it emerges from old Soviet habits into a new era operating a Western style business model.
What went wrong that a man, with so much potential, business-wise, reputation, exposure and financially secure future decided to risk all that for the sake of potentially circa $1M, an amount he apparently had access to anyway, and go rogue. To deliberately discourage 3rd party investors and establish alternative offices/headquarters with all chat
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