With the recent Clublink takeover proposal by Tri-White Coporation, the Canadian Shareholder Advisory Group would like to inform shareholders of a conflict of interest between insider shareholders and regular common shareholders.
Under the stewardship of CEO Rai Sahi, Clublink has loaned it’s executive officers over $4 million so that they could purchase almost 500 000 Clublink shares. These shares are presently being held as collateral by Clublink and will be voting to accept the takeover proposal.
This represents a clear conflict of interest as the independence of the officer shareholder voting is in doubt. Since the officers are employed by Clublink, and have purchased shares with money borrowed from Clublink, how can the public expect that these shares will be voted independently?
These types of insider loans serve the purpose of consolidating power within the upper ranks of the organization and help to ensure that voting results are skewed towards managements wishes. It is our recommendation that shares purchased by Clublink officers with money borrowed from Clublink and being held by Clublink as collateral be excluded from the takeover vote.
The following is a list of current company executive officers who have borrowed money from Clublink in order to purchase shares.
Robert Visentin is currently loaned $1 155 866 from Clublink to purchase 136 300 shares.
Charles F. Lorimer is currently loaned $923 248 to purchase 107 900 shares.
Edge M. Caravaggio is currently loaned $606 044 to purchase 70 000 shares.
Scott A. Davidson is currently loaned $572 850 to purchase 68 800 shares.
Meil Osborne is currently loaned $485 575 to purchase 56 300 shares.
Shareholders interested in getting more information can view the website www.ClublinkTakeover.wordpress.com or contact Mario Rizzi directly at 514 967 9827
