RE:RE:RE:RE:The New ArticlesTicker, I can relate to your concerns I've just gave up with the "what ifs" there is already so much going on in the markets ive just tried to stick to the things that look pretty safe with some upside while keeping dry powder to buy. I got some at 1.69 today I'm happy but will continue to add. Cheers!! ..
TickerTwit wrote: Worst case scenario? The Board is replaced one-at-a-time with members of the Chinese Communist Party (directors can be foreign citizens after the corporate articles are moved to BC, and BC is rife with CCP penetrations into politics and economics), DIV begins using North American assets to buy Chinese assets, and as time passes we don't own the company any longer because it takes orders from the CCP and the greater part of returns is directed to China.
It seems far-fetched in DIV's case, yes, but possible and there is a spectrum along which less far-fetched (but possible) bad things can happen.
Due diligence isn't writing a blank cheque for DIV management; it's careful consideration of the proposal. Does it benefit shareholders? What vulnerabilities are created? Are the relaxations being asked for appropriate, or excessive? Are some relaxations satisfactory and others not, and could the proposal be modified accordingly?
I think DIV management has done well for the most part, but viewing them as trusted friends is not a wise idea. Keep in mind that one or both of them (there are only two managing employees) could leave at any time. Sean and Greg merit considerable confidence based on their aggregate performance in the past five years, but what about future management?
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Shirtlessnomore wrote: I'm not sure for me personally I care too much whether they set up non voting or B shares but I cant figure out why they would? For me I dont really want an active role anyway. They are doing a good job in my opinion. ....
TickerTwit wrote: No one here reads MICs? Perhaps you should, just this one time, so you understand what entitlements DIV management wishes shareholders to give up.
Management doesn't get 'more flexibility' without shareholders losing something. Be sure you know what you're giving up and can assess its importance.
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TickerTwit wrote:
I read through most of the MIC text last night. There is one item that concerns me: can management (take "management" to include the directors, who in most companies are no more than rubber-stampers for management) create a new share class without shareholder approval?
Any opinions? And your reasoning?