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Hi Oliver,
In Stephen Franks press release about the Kerry Hoggard matter, he
said:
"We think the most he could be ordered to pay is approximately $600,000,
but the final measure of damage may be significantly less, and the maximum
penalty the Court can award, is three times the gain.
We will also be asking the court to establish some useful precedents,
to reassure applicants in such cases in future that they will be fully
reimbursed for all the costs and risks of taking these proceedings on behalf of
shareholders generally. Anything received above the costs of the action will go
to charity."
Hope this helps answer your question.
Best Regards,
Benjamin Dutton
----- Original Message -----
Sent: Thursday, June 15, 2000 11:02
AM
Subject: [sharechat] Fletchers and
Insider Trading
Was delighted to see an article in the Post last
night that said Stephen Franks and Roger Kerr are pursuing punitive penalties
for Kerry Hoggard. About time someone did! I was disgusted last
week when Fletchers said they did not consider taking further action as
necessary. How important is integrity to them? How did you
Fletcher shareholders feel about the company not going any
further?
The company has a DUTY to shareholders under the
SecAmendment Act to take actions on behalf of shareholders. If I was a
shareholder of Fletchers I would already have served a notice on the company
myself requiring that Fletchers take further action. Lost his chair and
paid back the profits? What sort of deterrent is that? The whole
point of 300% penalties is to act as a deterrent - who are the company to say
that the loss of job was a sufficient one?
I can't wait to hear how the High Court deals
with this one - if there is ANY integrity in the process at all there is no
way Kerry Hoggard will get out of there paying less than another $100k.
My question then is: who gets the $100k? My understanding was that only
the company can take the action, and that the moeny goes to the company to act
as compensation for damage to reputation. If Stephen Franks is leading
the action to restore FLC's reputation (and I assume with his expertise he
knows that he can), where does the money go?
Oliver
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