LPH directors scurrying like rats on a sinking ship
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On January 28, 2013, Douglas Cole resigned from his position as an independent director of Longwei Petroleum Investment Holding Limited (the “Company”). Mr. Cole was Chairman of the Company’s audit committee and a member of the Company’s nominating and compensation committees.
The Company is attaching hereto as Exhibit 17.1 a copy of correspondence received from Mr. Cole in connection with his resignation. In Mr. Cole’s resignation letter, he states that the Company has refused to approve certain resolutions presented by the audit committee related to the Company’s response to certain allegations made by a third party. The Company disagrees with this assertion and is still in the process of determining, along with the input of the full board of directors, the best course to take in refuting the allegations made against the Company. The Company believes the allegations contain numerous errors of facts, misleading speculations and malicious interpretations of events. Nevertheless, in order to provide the highest level of transparency to its shareholders, the Company and its legal counsel in the U.S and the PRC, as well as its auditor are reviewing the allegations and management is cooperating with the review process. The Company intends to take further action to defend itself.
On January 30, 2013, Xue Xiaoping resigned from her position as an independent director of the Company. Ms. Xiaoping was a member of the Company’s audit, compensation and nominating committees. Ms. Xiaoping did not resign due to any disagreements with the Company. A copy of Ms. Xiaoping’s resignation letter is attached hereto as Exhibit 17.2.
Even the worst of the worst companies realize they must file an 8-K for triggering events:
Form 8-K for LONGWEI PETROLEUM INVESTMENT HOLDING LTD
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Keep telling me that ABAT isn't TRYING to get SEC enforcement action against them. They announced all their changes to directors and officers without filing an 8-K. The only reason I can think for them not to get a 10-day suspension this week is that a case file was opened and it is a revocation and not a suspension in their future. That is my opinion and I have backed up why I think this is a very possible event in their near future.
I think the SEC should suspend them for 10-days and not revoke them yet. That way they will be on notice to come back into compliance. If they don't respond... then revoke them. It isn't fair to investors when enforcement is hit and miss. There should be consistency.