Hey Crikey, why isn’t it “John
McNiven’s Palamedia”? He’s by far the biggest shareholder and his
appointments have had management control for over three years. As you
know, I haven’t had any overall management control since McNiven became
a shareholder, haven’t been a director since early last year and I’m on
an employment contract with Palamedia which provides my services to
Seven.

Cheers, David

A current Palamedia insider writes:

Just
like Jane Smith, I too am an investor much put out by the corporate
governance of Palamedia. For instance, here is the text of an
announcement made to the ASX on August 30:

The Board of Palamedia Limited has made the strategic
decision, after the consideration of various alternatives, to sell all
operating assets including its major asset, Insto, subject to
shareholder approval. This decision has been made in the interests of
ensuring financial stability and the enhancement of shareholder value.
The orderly disposal of Insto is expected to achieve a result where
proceeds comfortably exceed liabilities providing value for
shareholders.

Yet in the annual report, the auditor’s final note sounds a grim warning indeed:

INHERENT UNCERTAINTY REGARDING GOING CONCERN

Without
qualification to the opinion expressed above, attention is drawn to the
following matters. As a result of the matters described in Note 1(a) of
the financial statements, there is a significant uncertainty whether
the Company and the Consolidated Entity will be able to continue as a
going concern and therefore whether they will realise their assets and
extinguish their liabilities in the normal course of business or in the
process of sale of the major assets, as detailed in note 22, and at the
amounts stated in the financial report.

Where are ASIC and the ASX on this?

Finally,
why is it that the board has entered into a financial agreement with
one of its directors, John McNiven, for what is basically a cash loan
at the very competitive rates of 20% per annum, calculated daily! This
is a disgrace.

This whole sorry corporate story stinks, and the
company should be put down to give its bleeding battler investors a
break to this on-going nightmare. I also feel sorry for David Koch as
most of the troubles of today emanate from poor management in the last
few years during a time when he was not involved with the day to day
management of the company. I reckon that he, most of all, can’t wait
for this company to die and be buried!

Peter Fray

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