Steve: I do not know the Canadian laws, but in this country Board of Directors are allowed to use loans (or even bonuses which is cash that need not be repaid) as incentives for its executives. A COO or CEO cannot just write itself the loan, but as a COO I have authorized loans to some of my executives before and if I needed a loan, I had to have the BOD authorize it (I had my bonuses authorized by the Board). There is a small point in this country, the loans have to be at market interest rates, otherwise, the IRS takes its cut on "impuned" interest (interest you should have paid but did not, thus considered taxable income).
I really do not see the big point here. If you have proof of the TSE looking into it, show it, if you have proof of misappropriation of funds, show it, but here, everything is above board and it is shown, as the law requires, in their corporate financial statements (and I am sure the Canadian authorities as well).
Cheers, Zeev
PS: Pluvia, just read you last post, no it is not greed, just my experience in Corporate America. Mind you it is not that I have not seen cases where top executives dipped their hands into tthe stockholder's pot (paying personal expenses and expenses of samll businesses on the side) from corporate coffers. But I have no evidence that this is the case here, we have a loan authorized by the board (and you may complain that the board is loaded with Khan' groupies), and thus "above board". I said before, I do not like it, but I see no evidences of wrong doing. |
