Thanks to reader “J” for the headsup.
What’s the story over at Capital Gold Corp (CGC.to) (CGLD.ob)? The question arises cos it seems like things are getting a trifle, teeny, eensy-weensy bit antsy at board level. Well what would you call it when there’s an en-masse resignation of board members and stuffy letters written to chairpeople that file their filings at the end of the week without bothering to mention a thing to shareholders?
Here’s the SEC Ref F 8-K you need to read and here’s the meat below. Also, keep reading cos underneath Otto got the letters written by two of the pissed-off/pissed-on ex-directors of CGC.to that make it pretty obvious that what went down on August 28th was clearly one of those moments that can easily be described as “a stormy meeting“.
On August 28, 2009, Ian A. Shaw resigned as a director of Capital Gold Corporation (the “Company”). At the time of his resignation, Mr. Shaw served as the chairman of the Audit Committee and a member of the Mergers and Acquisitions Committee and Compensation Committee of the board of directors (the “Board”). The resignation followed Mr. Shaw’s receipt of a letter from Gifford A. Dieterle, Chairman of the Board, President and Treasurer of the Company, requesting Mr. Shaw’s resignation due to, as expressed in the letter, inadequate performance as chairman of the Mergers and Acquisitions Committee that allegedly resulted in financial harm. In Mr. Shaw’s resignation letter, he disputed the allegations in Mr. Dieterle’s letter and informed the Company of his disagreement with Mr. Dieterle’s evaluation of his performance. A copy of Mr. Shaw’s resignation letter is attached hereto as an exhibit.
On August 28, 2009, John T. Postle resigned as a director of the Company effective as of the resolution of certain issues with his outstanding options. At the time of his resignation, Mr. Postle served as a member of the Audit Committee, Compensation Committee and the Mergers and Acquisitions Committee of the Board.
On September 2, 2009, Mark T. Nesbitt resigned as a director of the Company. At the time of his resignation, Mr. Nesbitt served as a member of the Audit Committee, Compensation Committee and the Mergers and Acquisitions Committee of the Board. The resignation followed Mr. Nesbitt’s receipt of an email from John Brownlie, a member of the Board and the Chief Operating Officer of the Company, raising questions about Mr. Nesbitt’s performance and certain actions taken as an independent director. In Mr. Nesbitt’s resignation letter, he informed the Company of his disagreement with Mr. Brownlie’s concerns, the Board’s failure to consider the views of the independent directors and with the strategic direction of the Company. A copy of Mr. Nesbitt’s resignation letter is attached hereto as an exhibit.
Mr. Gifford A. DieterleChairman, President and TreasurerCapital Gold Corporation76 Beaver StreetNew York, NY 10005
From your letter seeking my resignation it would appear that that I have lost the confidence of you, management and the Board of Capital Gold. While I seriously dispute the allegations you have made nevertheless I hereby resign from the Board of Directors of Capital Gold Corporation effective immediately. I have been granted certain options which I will exercise and I will submit an expense report for out of pocket costs incurred up until today.
Yours trulyIan A. Shaw
UPDATE: Date-stamped 1:52pm, the dudes at CGC.to must have read IKN and thought “Oh crap, we gotta tell them now”. Here’s the link to the announcement and note the highly prized new boys are also in charge of the financial trainwreck also known as Palladon Ventures, sharing board seats with Capital’s COO, John Brownlie.