Shareholders Meeting on Schedule - Online voting continues TORONTO, Oct. 31, 2019 (GLOBE NEWSWIRE) — Star Navigation Systems Group Ltd. (“Star”) has a suite of desirable products in demand from its customer base, but from the collapse in Star’s share price, it’s obvious the capital markets have no faith in Star’s board or management team to deliver those products to the customers. To protect Star’s future, the Concerned Shareholders requisitioned Star’s board to call a shareholder meeting for the purpose of electing seven new qualified independent directors.
The response from Star’s CEO was very odd – he simply stated his opinion that the requisition letter was “invalid”, with no reasons or logic given. This is not best practices and it reeks of desperation. It is clear he does not want to face judgment at the hands of the shareholders.
The Concerned Shareholders have made repeated attempts to finance Star, on the condition that the CEO resign and new board members be added. The CEO put his personal interests ahead of Star’s and refused all offers of financing. Instead he hired a large Bay Street law firm to protect only his own personal interests. He wants to be paid large amounts of money from Star in exchange for resigning, but there appears to be no lawyer actually defending Star’s interests. As a result, Star has run out of cash and cannot pay its auditors. This is why there may soon be a Cease Trade Order imposed against Star.
The Concerned Shareholders have called a shareholder meeting for December 11, 2019. This was done transparently and in full compliance with the law. The shareholder meeting will proceed on that date, and there is nothing the current CEO can do to stop it. Star’s transfer agent has complied with its statutory duties and has provided the Concerned Shareholders with a shareholder list.
Shareholders, please note that Star management and board lack the ability or power in law to cancel the shareholder meeting. They can huff and they can puff, but they cannot stop the shareholders from expressing their will at the December 11meeting. Once the new directors are in place, the Concerned Shareholders can quickly finance Star, correct any of the CEO’s regulatory missteps including the possible Cease Trade Order, rebuild the management team and execute on the business plan to the benefit of all shareholders