Related party transactions *Brace yourself*I'm not saying this kind of stuff doesn't happen all the time in corporate Canada, but these two are a little rich and perhaps unnecessary. See below from recent MD&A
Come on CSA team, nows not the time for questionable transactions that could be kept at arms length. As to barker's small 170K salary whcih was noted in a previous post, now you know to add another $99,063 onto it. Oh, and as it goes to a numbered company its very tax preferred.
I wonder is what consulting has Mr. Barker doe that is worth 100k in the past nine months in addition to his salary? That plus the 'legal fees' paid to a director total over $300,000. All going to management (or their companies) very quietly.
Does this company not have an annual meeting where shareholders get to roast some executive stupidity? At some of the AGMs I go to there would be blood in the aisles over this stuff.
Related Party Transactions
During the nine months ended June 30, 2010, the Company entered into the following related party transactions:
a) Legal fees of $132,802 (2009 - $371,161) were paid to a law firm for corporate matters of which a director, Mr. William Rosser, is a partner. Of this amount, $15,404 (2009 $NIL) is included in accounts payable. As well, a finder’s fee of $75,000 was paid to this law firm for the closing of the mezzanine debt of $3,000,000 on October 8, 2009 (see “Financial Position, Liquidity and Capital Resources”). Of the $3,000,000 cash proceeds, $2,500,000 of the proceeds was sourced through this law firm.
b) Management consulting fees of $99,063 (2009 - $123,229) were paid to a company, 371070 Alberta Ltd., over which an officer and director, Mr. Jim Barker, has significant influence