Business
Genesis Issues Statement Regarding Unauthorized Director News Releases
Genesis Issues Statement Regarding Unauthorized Director News Releases
About this update from Genesis Land Development Corp.
[{"type":"text","content":"\n\n\n\n May 21, 2010 (Canada NewsWire Group) -- Genesis Land Development Corp. ("Genesis" or the "Corporation") (TSX:GDC) advises that it has learned that two directors of the Corporation caused a press release dated May 16, 2010 (the "Press Release") to be issued purporting it to be a press release of a Special Committee of the Corporation, followed by a second unauthorized news release issued on the evening of May 20, 2010. Among other things, in the Press Release it was claimed certain steps and actions are being undertaken by a Special Committee of the Corporation. The Corporation is issuing this press release to clarify and correct certain matters addressed in the Press Release. The Press Release and the May 20 release were, to the knowledge of the Corporation, prepared and issued solely by Kevin Reed and Keith Ferrel and their counsel. The Corporation not only does not ratify the releases, but disavows any responsibility for the actions of Messrs Reed and Ferrel and of the contents of the Press Release.\nThe Corporation advises as follows:\n\n\n >\n\n\nThe other two directors of the Corporation, Messrs Singh and Manro, have made vigorous attempts to discuss these issues with Messrs Reed and Ferrel since they became aware of the Press Release on Monday. Unfortunately, Messrs Reed and Ferrel have not provided any explanation for their actions, other than to refer to certain communications received in recent weeks from certain minority shareholders indicating their dissatisfaction with the current direction of the Corporation. Messrs Reed and Ferrel did not share these concerns with the other directors. Nonetheless, Messrs Singh and Manro have proposed that the board of directors stick with the plan it had in place prior to the actions of Messrs Reed and Ferrel this week, to call its annual shareholder meeting and to propose to shareholders that a board comprised entirely of independent directors, plus the CEO, be elected at that meeting. That new board of directors would then be in a position to review the Corporation's strategic alternatives, if it saw fit to do so. No explanation has been provided by Messrs Reed and Farrel as to why they have decided to take this week's reckless, unauthorized and unilateral actions and to purport to initiate a strategic review without discussion with manageme...