March 28, 2008 by Nobody Fugazi
Posted in
VSTEX updated its rules yesterday, which I missed due to an incident involving a stick and one of my eyeballs:
We just amended the English version of our listing rules.
Rule #2 has been expanded and now reads as follows:
Every company must name in the listing module at least 2 directors. CEO and directors must be SL accounts registered and controlled by unique individuals.
The board of directors has the responsibility to manage the business of a corporation for the benefit of its shareholder owners.
The directors of Vstex listed corporations stand in a fiduciary relationship not only to the stockholders but also to the corporations upon whose boards they serve.
The director’s fiduciary duty to both the corporation and its shareholders is characterized as a triad: due care, good faith, and loyalty. That triparte fiduciary duty does not operate intermittently but is the constant compass by which all director actions for the corporation and interactions with its shareholders must be guided.
Although the fiduciary duty of a Vstex listed company director is unremitting, the exact course of conduct that must be charted to properly discharge that responsibility will change in the specific context of the action the director is taking with regard to either the corporation or its shareholders.
The VSTEX has endeavored to provide the directors with clear signal beacons and brightly lined-channel markers as they navigate with due care, good faith, and loyalty on behalf of a Vstex listed corporation and its shareholders.
- Rule #3 of the Section A (Company prospectus) has been expanded and now reads as follows:
Each quarter (Q1 January/March, Q2 April/June, Q3 July/September, Q4 October/December) companies will publish (within 10 calendar days past the quarter end) a single-step income statement. The single-step income statement does not have to follow any template and can be pasted in the company prospectus, and/or published on the company website, and/or sent to the VSTEX at communication@vstex.net and/or published in any place/format authorized by the VSTEX.
This is a mandatory requirement and failure to comply is considered a serious infringement. Unless the income statement is posted, the VSTEX will:
- 15 calendar days past the quarter end, put the company on temporary trading halt (management accounts will be locked and put on hold)
- 30 calendar days past the quarter end, initiate the company permanent delisting process
Samantha Goldflake
Communication and Public Relations Director
This might have some interesting results. No longer can one person with multiple avatars be a CEO and Directors of a company at the same time - a questionable practice, to say the least.
VSTEX does seem to be leading the pack for accountability of individuals who are involved with listed companies on an exchange. It will be interesting to see what shakes out of their new policy.
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Sounds good to me...
This is a good step I think. Kudos to VSTEX for taking this action. If I recall correctly, however, I believe that Cocky Dagger has been monitoring alts at ISE for a while now. I think it was part of the reason AVC was so upset with ISE at one time.
Although I do support the use of alts for holding purposes I believe that each board memeber should be backed by a unique individual.
Way to go VSTEX.
Apparently our last rules
Apparently our last rules update was misleading, our apologies for that.
We have been prohibiting the use of alts to have the same RL person cover more than one role in the board of directors for a long time now.
As we posted, rule #2 was expanded. Before the update, the text was:
Every company must name in the listing module at least 2 directors. CEO and directors must be SL accounts registered and controlled by unique individuals.
With the update, we added this part:
The board of directors has the responsibility to manage the business of a corporation for the benefit of its shareholder owners.
The directors of Vstex listed corporations stand in a fiduciary relationship not only to the stockholders but also to the corporations upon whose boards they serve.
The director’s fiduciary duty to both the corporation and its shareholders is characterized as a triad: due care, good faith, and loyalty. That triparte fiduciary duty does not operate intermittently but is the constant compass by which all director actions for the corporation and interactions with its shareholders must be guided.
Although the fiduciary duty of a Vstex listed company director is unremitting, the exact course of conduct that must be charted to properly discharge that responsibility will change in the specific context of the action the director is taking with regard to either the corporation or its shareholders.
The VSTEX has endeavored to provide the directors with clear signal beacons and brightly lined-channel markers as they navigate with due care, good faith, and loyalty on behalf of a Vstex listed corporation and its shareholders.
While the addition does not change our standing on the use of alts in a listed company board of directors, it stress out important concepts like the ones I quoted in bold.
Being a CEO, sitting in a board of directors, is not something that should be taken lightly, as a game or even worse as a way to take and "play" with shareholders money without any kind of care or respect for those stockholders.
We have enough (and if we have, go figure shareholders of defaulted companies) of claims like or around the line of "I did not take any money, others did" (Jasper Tizzy), "I was only a silent owner, the CEO was taking all of the decisions" (Mystik Boucher), "Mine is a RL registered company, and all shares are belong to me" (Monkey Canning).
Hope this helps,
Samantha Goldflake - Director
VSTEX Communication and Public Relations
http://www.vstex.net
Give me a break.
Cocky Dagger may be monitoring alts but he doesn't lift a finger when given proof positive of officers stealing money and scamming people.. not to mention insider trading. It's all a hoax...every last bit of it.