The CPA-reviewed financial statements for FY2021 were required by the bylaws and California law to be sent to shareholders by March 30, 2022. They are now a week late. There is no ETA and the board took no action in the March 31 meeting to accelerate them.
Staff reported to the board on March 31 that the company’s accounting firm, Lindsay and Company, has all the information it needs, but that is probably wrong. The board has not acted to approve the company’s matching percentage to the 401(k) Plan, and only the board can make the decision to write off as worthless or impaired the $880,000 “asset” consisting of money spent on the failed Well #7 project. The next regular board meeting is not until April 28.
The bylaws and California law require the financial statements to be mailed to shareholders at least 15 days before the annual meeting, which must be held by May 13, 2022. Since Lindsay and Company will need at least a few days to produce the annual report after they get all the information, it is obvious that the annual meeting date deadline is also going to be missed.
Who benefits from these deliberate delays?