CVI 0.00% 0.3¢ cvi energy corporation limited

change of tack

  1. 1,088 Posts.
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    Any thoughts on the points below then? This is a CVI specific issue.

    What are the sovereign risks here? (I'm not at all suggesting that posters are oblivious to them). Business dealings in countries that do not have similar corporation laws to e.g. Australia must carry some major risks.

    It's interesting to note that when business leaders enter a country that has an entirely different political and social system with the mindset of the country that they live in - the traps are plentiful and not easily discernible.

    The business leaders of some nations are people who take their cues from and are governed by very strong familial ties and not shareholders and similar governing bodies such as ASIC.

    It's a very difficult thing to have an appreciation of how deep and extensive these familial and political allegiances can run. Perhaps MS has his antenna on high alert - I certainly would. And if it is known that you have access to a $100m credit facility you will definitely be feted by many I would assume.

    A local example might give additional clarity to what I am saying.

    There is one prime reason that ATSIC failed and it's because the whole thing was set up on the principles of general mainstream legal provisions commonly found in democracies. Unfortunately (for ATSIC at least) Aboriginal communities work completely on family ties and links and the resources and decisions reached reflect these links hence money and largesse was distributed to those families that held power on the ATSIC board. Classic misperception and millions lost.

    Wouldn't surprise me if the same existed in African countries - no doubt it does. Interestingly, though, should MS get in with one of the 'power families' then the above can work in your favour. Thing is though, it's nonetheless a knife edge existence.
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