RE:AE's severence. Zen Should provide update on status?riskybusiness19 wrote: Shouldn't the company provide an update on the status of this? gGiven the company is small and cash tight, wouldn't it be material?
Absolutely, the status of Aubrey's contract is material. All non-arms-length contracts with insiders are material. The company failed to dislcose the status of the contract in its Audited Annual Financial Statement, its Interim Financial Statement filed thereafter, and the Management Information Circular for the Annual and Special Meeting of Shareholders.
Shareholders have a right to know, and the company has a duty to disclose: the current status of the employment contract (is it still in force or has it been terminated); the salary due and payable under the contract; severance payments due under the contract; and, whether there may be litigation or other encumbrances requiring financial set-asides reportable on the balance sheet, if the contract is being contested in the courts.
The officers who certified the financial filings are in breach of their fiduciary duties to the company, also.