Core Gold DMMIF

RE:RE:RE:CANDYLAND

[The_Alchemist]

This is is on strikeman Elliot’s website, I believe that was core golds council for the merger.  Either way, it’s a ruling in Delaware that is considered to apply to Canadian directors.  To paraphrase: the ruling states that directors are responsible for ensuring all assets are actually owned by the company even if it’s in another country, they must retain professionals from the area to do so if needed.  I believe this would apply to Core Golds directors and the Vista mill permit, would it not?  Merging with a company before performing adequate due diligence.

“In an interlocutory decision where he refused to dismiss claims of breach of fiduciary duty, Chancellor Strine recited the parameters of the duty to monitor and applied them to the context of corporations with overseas activities.

Specifically, Chancellor Strine remarked that where the assets of the corporation are overseas, directors “better have in place a system of controls to make sure that you know you actually own the assets”. Directors were thus required to have their “physical body in China an awful lot”. Further, directors are required in such cases to “have the language skills to navigate the environment in which the company is operating” and retain legal and accounting professionals “who are fit to the task of maintaining a system of controls over a public company”.

Ultimately, Chancellor Strine found that directors could not simply remain in the United States and discharge their duties by simply attending quarterly telephone conference calls.”

https://www.stikeman.com/fr-ca/savoir/droit-minier-canadien/canadian-mining-companies-take-note-delaware-case-provides-guidance-to-directors-of-corporations-with-overseas-assets