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Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: burn2learn who wrote (12560)	10/28/1998 9:59:00 AM
From: Rutgers	Respond to of 13925

November 6th, 1998 is the EGM or what we would traditionally call a "special meeting" for shareholders Mike, you wrote: NOV 6, is the annual meeting in Singapore, so they will actually start buying into the US market on the 6th? I believe "EGM" stands for extraordinary general meeting. Do not confuse this with the "annual" shareholders meeting. What Creative said, in not so many words, nor as clear and concise as perhaps they should have [they should have turned to John Danforth, General Counsel], is that Singapore law permits them to purchase up to 10% of the stock per each year that runs from one annual ordinary shareholders meeting to the next. In other words, it is not measured by the proverbial "calendar" year or even "fiscal" year, but rather it is specifically tied to the date of the annual shareholder meeting. That means that if the buyback garners an affirmative vote on Nov. 6th, the clock will immediately begin to tick for them to buyback 10% of the stock and will stop ticking when the next annual shareholders meetings takes place (should be around December 11, 1998 unless they push it back to allow for a few more trading days). Try to think of this as something akin to the Cinderella story, you know, where at midnight blah, blah, blah. Well, if they do not purchase 10% of the stock within the next two months, then they forever waive that opportunity inasmuch as they will automatically be limited to purchasing only 10% of the then current number of outstanding shares after this upcoming annual shareholders meeting. Get the picture? For those of you who believe that most companies like to incorporate in Delaware to take advantage of their pro-corporation laws, maybe Singapore has found something here. If you want to talk about the ramifications of the above, I tried to start the discussion last night: Message 6186162