A strike ending up in an election spares the CEO as the company needs to continue running.Hi All
I know some like to rail against the corporate machine but it does seem that the majority of the anger is directed at Sean Hehir CEO.
The FACT of the matter is that he is clearly meeting the benchmarks given to him by the Board of establishing a global ecosystem of partners and sales opportunities supported by an experienced talented global sales and marketing team.
On the technology development side he has clearly accelerated the development timelines with the introduction of the 18 month development cycle for next generation product aligned with partner and customer requirements.
So from the Board’s perspective he is doing what he was employed to do and though some here and elsewhere are critical of the progress made on income growth the sales team has been booking deals such as EDGX/European Space Commission, VVDN EDGE Box, TATA Elxsi, Renesas, Unigen, MegaChips, Teksun, Socionext etc all of which are marketing AKIDA in the real world.
In short the bottom line is that looking from the outside it is difficult to see any basis for the Board to respond to the disgruntled and remove the CEO particularly when in the real world such action would likely lead to a significant payment for wrongful dismissal.
So what do these unhappy holders do. Threaten a second strike. But will this resolve their problem with the CEO.
Alas no because the pesky little CEO is not removed by a second strike it only affects the Directors.
Regardless in a spirit of butting their heads against the brick wall the second strike occurs and the same Directors are once again elected or even new Directors are elected they will still face a situation where the CEO is performant and his removal would be impossible.
To their dismay the disruption caused by the second strike and the 90 days at least of market uncertainty until the election of Directors takes place crushes the share price in an unprecedented fashion and their woes compound.
So what should these poor unhappy shareholders do?
1. They can write anonymous complaints on social media warning the public against investing because of the terrible CEO. This of course would not be a logical thing to do. It would be like advertising your car for sale and putting a sign on it saying don’t buy this car it’s a dog. No one would do this.
2. They could write to the company expressing their concerns privately in the hope that by pointing out their great expertise and qualifications in the commercialisation of world first technology the Company will take notice and implement their suggestions. Not an option for those who do not have this expertise of course.
3. They could decide to cut their losses and sell and move on to better performing investments.
4. They could as some investors claim to do put their shares in the bottom draw and forget about them on the basis that they have a belief that eventually the Company will prove to be the investment they hoped.
5. Cannot think of a fifth thing to do other than ignore this post and keep on doing what they are doing. Perhaps create some additional profiles on social media so they can appear to speak for a majority of shareholders. This of course would just further blunt market confidence so probably not a sensible option.
By the way Unigen is promoting yesterdays release on their website:
BrainChip and Unigen Partner to Deliver Powerful, Energy-Efficient Edge AI Server - Unigen
BrainChip Holdings Ltd (ASX: BRN, OTCQX: BRCHF, ADR: BCHPY), the world’s first commercial producer of ultra-low power, fully digital, event-based, neuromorphic AI IP, and Unigen Corporation, a global leader in the design and manufacturing of enterprise and industrial electronics, today announced...unigen.com
My opinion only DYOR
Fact Finder
Merry Christmas to all genuine shareholders
Strikes are not as bad as what some make out. Its an ' anger venting' mechanism and a message to the BOD..
A strike requires 25% of the vote at the AGM.
A second strike the following year (via 25% vote) then sees a vote as whether directors should stand for re election. This needs a majority as opposed to 25% to pass the strike. So its way harder to pass than the 25% required for a strike.
If its passed a meeting for directors elections must take place within 90 days.
Obviously if a meeting passes a resolution for a directors re election the share price would completely tank due to uncertainty. Client and general market faith in the company could well be materially damaged as would holders finances.
Its very, very, very unlikely a 2nd strike would progress to a successful vote for a new election within 90 days.
IMO the path to revenue is becoming clearer and will be more so by the 2024 AGM.
I think BRN will eventually be successful and drag a lot of currently kicking and screaming disgruntled holders over the finish line with it.
Getting dragged over the finish line kicking and screaming is just the way some do business. Its tough no matter what.
