RE:RE:Current management and the Board deserve a lot of credit. Ari, there is no question the previous management / board left the current management / board with a can of worms regarding the outstanding lawsuits on the books and until the corporation can break free of constant litigation, shareholders will continue to suffer.
The May 28, 2018, Originating Application brought against shareholders by previous management / directors was a complete waste of hundreds of thousands of shareholder money, as the judge ruled against Karnalyte in every claim but one May 28, 2018 post that occurred on the Stockhouse forum considered solicitation.
On June 29, 2018, previous management acting on behalf of Karnalyte Resources filed a statement of claim at the Court of Queen's Bench of Alberta against a shareholder claiming defamation.
With the recent events of very clear defamatory statements made by shareholders (csg), and no subsequent defamation lawsuits filed by the corporation for their demeaning public comments, a precedent has clearly been set.
On July 4, 2018, previous management acting on behalf of Karnalyte Resources filed a statement of claim against another shareholder claiming breaches of fiduciary duties, improper proxy solicitation, misrepresentation before securities regulators, and interference with contractual relationships.
Again, a big conundrum for current management as the courts have already clearly ruled that improper proxy solicitation, misrepresentation before securities regulators and interference with contractual relationships, did not occur with this shareholder.
To add to that, the corporation has publicly reported that 3 previous directors breached not only their fiduciary duties but also code of conduct rules, and yet no lawsuits were filed against them by the corporation, so it would be reasonable to assume current management would drop these lawsuits or risk the argument of holding shareholders to double standards, creating more lawsuits.
In the best interests of all shareholders and the preservation of capital it seems like an easy decision, but things like that are seldom easy when lawyers are involved.