All: I had hoped to have Les price answer these question on-line but
this is what we have for now. I still plan a trip this month and am
awaiting his open dates. For now, here is his faxed anwser to our
questions in three parts. Part 1 of 3 - the cover letter:
Dear Jerry:
In theory, not necessarily practice, a public company informs all its
"registered" shareholders of its progress on an annual basis within 90
days of the corprate year end. As well, from time to time as developments
occur, news is diseminated to "registered" shareholders throughout the
year.
The system breaks down because most shareholders do not register their stock.
NPEC, recognizing that shareholders do not register, compile a book
of other shareholders which we regularly fax news to as well as decimate
news through the media. In the case of annual and other meetings, the
company, by statute, cannot recognize other than registered shareholders.
We, from time to time, request known shareholders to register, but this
by practice usually falls on deaf ears.
NPEC, for years, has carried between 3000 and 4000 registered shareholders.
Own known shareholders, not registered, exceed another 2000 names. I would
estimate that buried in various brokerage accounts, of which we have no
knowledge on contact is a further 1000 to 2000 investors. In summary ,we
probably have between 6000 to 8000 shareholders. Needless to say this
represents an enormous cost to service, both in respect to direct operations
as well as manpower and telephones.
In regards to disclosure, the statutory requirements are at best minimal.
We have a policy of disclosure which far exceeds the statutory minimals.
However, there comes a point where your requests exceed good business
practice, and as well, our partners or associates are also questioned about
contracts or details which they are not required or at liberty to comment on.
As well, it is common practice for us to sign "non-disclosure" agreements
during negotiations and contracts stages which can extend for a considerable
period of time. We also have clauses in various agreements prohibiting the
release of information without particular time consuming written consent
for various parties to the agreement. This is a particulary time consuming
aspect of the Ecuador contracts as we require five levels of approvals
to release specific production data to the public.
In summary, in respect to your specific requests, I will release to you
full information that is required by statue to any "registered" shareholder
and continue to exceed that requirement until it reaches a point where
it reaches a point where it may jeopardize any contracts NP is involved
in, or are under negotiation or incomplete.
As, at this point, it is still indefinite as to the exact timing of
our meeting, I will dispose of several or our agenda items:
part 2
part 1
We can expand on these answers during your visit and move onto other
issues of interest.
I look forward to meeting you.
Yours truely,
Les Price
P.S. Let Nicola know if you require local hotel accommodation |
