Do regular shareholders get this safety net ?
In March Legacy announced that its board backstopped a $5.68 million margin loan last year for president and chief executive officer Trent Yanko and his spouse. The couple had bought Legacy shares through the loan, backed by the lending value of shares already owned by the couple. But last year’s oil price drop saw Legacy’s stock fall 64 per cent in the last quarter alone, triggering a margin call on the loan. The Legacy board determined it was “in the best interests of Legacy to provide the guarantee” and remove external pressure on Yanko “that might affect corporate decisions,” the company said in a filing