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korab head settles defamation case

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    Korab head settles defamation case against shareholder

    ANDREW BURRELL THE AUSTRALIAN NOVEMBER 15, 2013 12:00AM

    THE head of Perth-based gold explorer Korab Resources has ended a controversial defamation case he launched against one of his shareholders over disparaging comments about the company that were published on internet chat forum HotCopper.

    Korab executive chairman Andrej Karpinski sued Queensland couple Campbell and Amber Rodgers in the West Australian Supreme Court over the allegedly defamatory comments.

    He told The Australian in July that the couple -- who faced mounting legal bills and a potential damages payout as part of the legal action -- had sold all their Korab shares several years ago and he would never sue one of the company's shareholders.

    But it emerged later that Mrs Campbell remained a Korab shareholder.

    Mr Karpinski said yesterday he could not comment on the terms of the settlement because they were confidential.

    "Therefore, I can't tell you if there are any damages payable," he said.

    "However, I can tell you that if there are any damages, they will be forwarded straight to charity."

    Mr Karpinski said he had used his own funds, rather than the company's, to bring the case.

    HotCopper managing director Greg D'Arcy welcomed the settlement of the action but said it should never have been launched in the first place.

    "As an organisation which defends shareholders' interests, including their right to free speech, HotCopper was appalled that the Korab Resources chief sued the company's shareholders," he said. "But we are pleased to hear that the action has been settled.

    "It is totally unacceptable for directors to sue their company's shareholders.

    "It is rightly seen by the investment community as a noxious practice which, in our view, has the potential to damage their company's standing in the market."

    Mr Karpinski sued Mr and Mrs Rodgers over complaints they made about Korab's alleged failure to fulfil a 2010 promise to make an in-specie distribution of shares in two of its subsidiaries, Melrose Gold Mines and Lugansk Gold.

    Korab revealed last year the planned distributions would not go ahead because they were contingent on Melrose and Lugansk being listed on the Australian Securities Exchange.

    That sparked complaints from some investors, prompting the company to say it made an "inadvertent error" in 2010 when it said the distributions were not conditional on either of the two companies being admitted to the ASX.

    Korab's legal brawl is the latest example of a resources company taking court action against small shareholders over allegedly defamatory comments made on internet chat forums.

    Three directors of Perth-based Empire Oil and Gas have sued shareholders over the content of posts on HotCopper and other websites. Empire has indemnified its directors for the defamation actions.

    In 2010, Cudeco founder Wayne McCrae also initiated legal action over comments about his copper company on the website, but the case was dropped.

    - See more at: http://www.theaustralian.com.au/business/mining-energy/korab-head-settles-defamation-case-against-shareholder/story-e6frg9df-1226760177790#sthash.DjZdZyUX.dpuf
 
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