SLEC takes hard-nose stance against WSE | Stock Market

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SLEC takes hard-nose stance against WSE

Written by Xavier Mohr

Monday, 12 November 2007

SLEC calles for companies to delist from
World Stock Exchange after HCB/Midas Saga

Per a statement received earlier this evening:

After hearing testimony from individuals investigating the situation of HCB refusing to pay its dividend despite claiming to have ample assets to do so, and using said default to attempt to force Midas Bank to turn over its assets to LukeConnell Vandeverre, the SLEC [Second Life Exchange Commission] has voted in favor of demanding that LukeConnell Vandeverre pay the dividend of 650,000 L$ to Midas Commons within 8 hours.
It is the responsibility of those issuing bonds to pay dividends when they have committed to do so. Using a refusal to pay a dividend as a lever to commit a hostile takeover of a company one owes money to is not a legitimate or ethical market action. Lukes actions constitute a gross breach of ethics and a violation of the trust he holds from investors and CEOs.
The mission of the SLEC is to use market pressure and publicity to execute its enforcement actions. SLEC membership constitutes over 70 listed companies and hundreds of investors from around SL. As such, it is the duty of all investors and listed companies to divest from HCL and delist their companies from WSE. Companies that refuse to delist from WSE should likewise be divested from by the investing public. Listed Companies have 1 week from the 48 hour deadline to complete a delisting and relisting upon another exchange.

We should have a chat log from the SLEC meeting posted by the morning.

Stay tuned to SLReports.net for more information

Comments

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SLReports.net User - The WSEard of Oz

|2007-11-15 23:37:44

Weeeerree OFF to see the WSEard, the Plunderful WSEard of Oz!!!

PAY NO
ATTENTION TO THE MONEY BEHIND THE CURTAIN! I AM THE GREAT AND POWERFUL WSEard of
OZ!!!

LukeConnell Vandeverre - WSE Update

|2007-11-15 17:57:56

Dear My Fellow SL Residents,

There has been a claim by a group called
"SLEC" or Second Life Exchange Commission that CEO's delist or for
shareholders to sell their shares.

The SLEC is not what it once was, it is
now a front for IntLibber Brautigan to help him promote his new exchange and to
allow him to try and create negative press about the WSE which he has always
done since we left his land due to him trying to force WSE on a decision that
wasn't in the interests of the market but his land business.

The announcement
was directly posted to SLEC members by IntLibber Brautigan and only goes to
confirm the above.

They allegations made by IntLibber concerning the Midas
Bank situation are completely inaccurate.

Hope Capital announced that it
would be cancelling the bond interest payment and dividend. These payments have
been deferred and are to be paid at a future date.

Approximate ly 3 weeks
later Midas Commons contacted me and asked if we were paying the interest. He
had not read the announcement concerning his major investment and only read it
after I asked him to at least 3 times.

Once he read the announcement he said
that he would be bankrupt without as he would have no lindens for his bank
depositors along with no lindens at all for commitments to his companies listed
on the WSE.

I explained that we would not be changing our own financial
decisions no matter what his financial position. He then repeated that he is
bankrupt and that we must pay him the bond interest payment along with making
many threats and demands.

Midas was clearly bankrupt and in distress and
after showing signs of financial distress in the month leading up to this
situation.

The WSE made a decision to lock his WSE account in order to
prevent him from dumping his assets on the market, crashing prices and leaving
SL which is a situation that has occurred to often in the past with other SL
banks.

We informed Midas of these actions and requested that he supply the
avatar names and balances of his bank depositors so that we could also allow
them to benefit from the actions taken by WSE to ensure that users will get the
best possible return on their deposits. To date Midas has only offered to
provide such a list if Hope Capital honour his deposits of between 6 to 10m
lindens in OurBank. Hope Capital isn't going to take on responsibility for an
additional L$6-10m debt that was created by Midas Commons. There is also the
potential for him to create false accounts under alternate avatars that would
allow him to allocate himself huge balances and therefore steal lindens from the
system.

Since Midas is bankrupt, a word he repeated multiple times to me, the
WSE then delisted his listed companies and transferred all shareholders, shares
and bonds of Midas companies to the WSE Traders Fund. We also removed any shares
owned by Midas Commons in his own companies so that there Net Asset Value would
remain close to what it was prior to the delisting of Midas companies.

This
situation occurred approximately 3 weeks after Hope Capital had made its
announcement concerning the bond interest payment and dividend and the decision
has nothing to do with Midas Commons or an alleged takeover attempt.

The WSE
Traders Fund shareholders own former Midas assets not HCL or the WSE.

There
are over 25,000 WSE users of this less that 500 would even know what the SLEC
was or is and even less would know anything about the Midas situation or the
announcement by SLEC as their reach, membership and exposure to the market is
limited. The demands by the SLEC should be taken as a grain of salt and not
taken seriously.

The WSE does not acknowledge or endorse the SLEC for a
number of reasons mostly as it is yet to follow up words and intentions with
actions such as offering educational information to SL traders etc.

The WSE
now has come along way since the 7th March 2007 to become the leading Internet
based Stock Exchange system focused on virtual companies in Second
Life.

Since being established it constantly overcomes any challenges it
faces while improving and growing to provide users with and the world with a
fully interactive trading experience.

The WSE has achieved over 25,646
accounts, raised IPO's over L$129,551,917.70, WIC$1,809.15, Secondary offers
over L$27108766.30, WIC$2991.23 and had exchange turnover exceed
L$509,690,788.19

The WSE is progressing well. We have been aggressively
cleaning up the market, making sure CEO's keep the market updated and delisting
any companies that fail to adhere to the WSE Constitution, Listing Rules and
Terms.

We have also been extremely busy developing the very latest version
of the WSE Platform called WSE 4.0 which is progressing well and we expect the
new website design, layout, functionality and services should be completed by
the 25th of December 2007.

We are cleaning up the market and developing the
WSE trading platform ready for our worldwide launch of the World Stock Exchange
to the mass market as the worlds leading internet based stock exchange platform
to be used for educational and entertainment purposes.

We expect majority of
future WSE traders will be general Internet users with a browser using the World
Internet Currency as their chosen currency for trading on the WSE.

We expect
that trading volume will exceed L$10m lindens per 24 hours with excess of 50,000
new WSE traders participating in the market.

We ask for your patience,
continued support, continued regular updates to the market such as monthly
announcements and financial reports while we complete this final major phase of
the WSE's development and growth.

Before making any decision or taking any
actions I always make sure that I'm fully aware of the possible
consequences.

Eve ry decision I make or action I take are made in the best
interests of the majority of stakeholders at all times. There are times when we
as leaders must make decisions that can lead to some negative consequences in
the short term in order for us to make a greater positive impacts in the longer
term. It is for this reason that WSE is still operational when many other
virtual businesses and bank are not and it is for this reason that the WSE is on
the verge of major growth.

Kind Regards,

LukeConn ell Vandeverre,
Chairma
n & CEO
World Stock Exchange (WSE)
www.wselive.c om

Arbitrage Wise - NOT a Capex thing

|2007-11-13 18:22:53

Just wanted to clarify that this has nothing to do with SLCapex.

SLReports.net User - terms of service

|2007-11-13 16:04:06

The entire point is that consumers have the choice to read the terms of service
before they agree. If they don't read them and select agree or they ignore them
then they are literally saying they don't care. If something happens that they
don't like they can't complain because they should have read the terms of
service before they proceeded in the first place. This is the same issue in real
life as well. Consumers choose not to read the terms of service and therefore
agree to whatever the service provider says.

SLReports.net User - very troubling

|2007-11-13 12:01:05

It does seem as though alot of power is given to the writers/owners of the TOS
of these various entities.
Why is there so much power given to these
TOS???
Once men 'click to agree', it seems like futility to try and come
against the TOS?
I wonder if maybe the regulating authorities might try to come
up with something, so that consumers are protected, irregardless of whatever
they 'click to agree' to???
It seems that men give up powers, or much powers,
by clicking
to agree with some of the TOS???
Therefore, frustration arises
if/when men are allegedly offended?? Because they gave away all their power by
'clicking to agree'???
Shouldn't it be an 'offence' to tempt men, and take away
their power like this??? What do other people think?
I am very troubled by
this.

Cash Yiyuan

|SAdministrator |2007-11-13 08:52:14

It would be nice to see people register on the site when they are going to
comment.

SLReports.net User - Interesting2

|2007-11-13 08:26:34

I forgot to mention that in real life, this type of matter might not get
'reconciled' very quickly; and if it did go to court, it might drag on for a
period of time.
During this 'lag' time, the company 'at the mercy of' the other
company is sort of left in limbo.
Does wse have the 'right' to make up its own
TOS, that grants a clause to companies on wse, whereby they do not have to honor
thier promised dividends and/or bond payments?
If wse does have this 'right',
then who gave wse that 'right'?
If wse doesn't have this 'right', then perhaps
SLEC is correct???
I think this is also a matter that is connected to an
article,
I read on 'virtually blind' website, in an article titled 'CLICK TO
AGREE'.
I also think it has to do with LL TOS, and with the concepts
of
'fictional currency' or 'chips' or 'virtual currencies'.
Perhap s, 'HE WHO
GAINS POWERS/AUTHORITIES OVER THE CLICK TO AGREE BUTTONS' WINS????
Or, perhaps
he who finds more justifications, in regards to
'click to agree' buttons, might
'win'?
I think this is connected to the 'will of man', and 'whose will is
going to be done'.
Anyone believe in Jesus here? Jesus was involved in a huge
will
'struggle' or something like that in the garden of Gethsemane, just prior
to being tortured and killed, and jesus said
'If it be possible, take this cup
away from me', 'but not my will be done, by thy will be done'.
The 'click to
agree' issues are sort of 'whose will be done' issues.

SLReports.net User

|2007-11-13 07:46:40

It's a little unfair to say that the SLEC has an anti-WSE agenda when a fair
amount of the SLEC membership is made up of WSE companies and WSE investors,
most of whom still somewhat believe in the principals the WSE trumpets, but
rarely practices.

If the WSE was to step up to the plate and participate in
helping to create a universal SL set of standards instead of being obscure,
shady and monopolistic they might find a more receptive audience and a new
investor base.

As far as the bond interest, perhaps the WSE should have
done a more thorough financial check to ensure they could pay out the interest
AS PROMISED before they took anyone's money. I find it interesting that most of
the excuses used to defer payment on the bond interest occurred months before
the issuance of the bonds, therefore WSE should have known they would not be
able to pay out. Talk about undermining investor confidence…

In regard to the
SLEC, it's actions are not that of a regulator or enforcer. Its like the SLBB
in this manner. They have never played or tried to play an enforcer role from
what I’ve witnessed.

The actions of the SLEC in the beginning were to create
a common ground and protect the investor, however it became apparent that some
exchanges had no interest in finding a common ground. I think the SLEC is now
trying to find a role as an enforcer without a stick. Perhaps it should go back
to trying to unite and focus on finding core transparencies for SL publicly
listed companies.

Laughing Hard - SLEC Has No Authority

|2007-11-13 07:44:35

For some reason, the SLEC thinks that they have some sort of authority to come
in and direct how companies should be listed. "The mission of the SLEC is to
use market pressure and publicity to execute its enforcement actions."
Market pressure and publicity being used as enforcement? Who the hell wrote
that, anyway?

To come in almost two weeks after-the-fact and have a hearing
on the HCB / Midas bullshit and then "DEMANDING" that Luke pay the
dividend is very laughable. I made that determination, as soon as I heard about
it.

The fact is, the way this current so-called SLEC is managed, coupled with
the fact that anything they say is "old news" means that the current
form of the SLEC must be taken apart. No member of the current SLEC directors
needs to be a part of any future group that sets trading regulations
in-game.

The current SLEC is a joke, and the joke keeps getting funnier and
funnier.

SLReports.net User - interesting

|2007-11-13 07:15:24

I think I read in the TOS, or somewhere on wse site, that companies are under no
obligations to pay promised dividends, or something like that.
So, irregardless
of whatever companies promise, they are given that clause on wse, that they do
not have to honor what they promise. If I read it right anyways.
So, investors
ought not to be moved by promises of dividends or bond-payments, because there
is no law or enforcements to cause companies to honor their promises.
Rather,
it seems a matter of 'trust', or even of 'gambling' on sl stocks. Yes, gambling.

So, any one who relies on dividends or bond payments, is really at the 'mercy'
of the companies or persons who promised to pay the dividends or bond
payments.
I think that means that wse was unmerciful towards Midas groups.
Being unmerciful is transgressions of moralities, and laws, but is not enforced,
as evidenced by power being given instead to the promisers of paying the
dividends and bond payments.
Power is not really in the hands of those 'at the
mercy of others'. Rather, the power is in the hands of those whose choice it is
to be 'merciful' or 'unmerciful'.
So, as far as I can tell, Midas companies
are/were quite helpless, and at the mercy of wse, due to clause that says that
companies do not have to pay dividends they promised to pay. I think those are
TOS of wse? But, it might be that wse TOS are in error, or transgression? But,
where is the law, in sl?? If there is no law in sl, then how can there be any
transgressions? Rather, it is moralities, and philosophies, and religions, and
we are all 'at the mercies of one another', it seems; but obviously
self-interests lead men to be unmerciful towards others sometimes?
Midas
companies erred, by placing themselves at the mercies of wse, perhaps?
Over-reliance on the potential 'mercies' on any one particular dividend or
bond-payment issuer; where that trust was 'betrayed', but with the prior clause
stating that companies on wse do not have to pay what they promise to pay?
But,
I do not think SLEC has been given power and/or authority to 'command' men like
the article is showing.
Men do not have to obey SLEC. Or, maybe I ought to ask
the question 'WHO GAVE SLEC THIS POWER AND AUTHORITY?'(I don't think anyone gave
them this power/authority)

SLReports.net User

|2007-11-13 06:47:13

"It was made clear that HCL announced the deferred HCB bond interest payment
decision weeks before Midas Group informed them of being bankrupt"

HCL
defaulting on a bond payment, doesn't make their actions right just because they
announced it two weeks ahead of the default. In real life, HCL would have been
forced into bankruptcy by the bond holders.

The bigger question to all of
this is not the Midas bankruptcy or HCL forcing Midas into bankruptcy, but why
did HCL really not pay the interest that was due to the bond holders. The
question is even more important since HCL is taking a very active role in
policing the securities listed on the WSE while mismanaging their own
securities.

SLReports.net User

|2007-11-13 05:30:30

Alaways the same Anti-WSE comments from the same small group of people. Only
this time under the banner of SLEC.

Since its day of inception the SLEC was
established and supported by individuals with an Anti-WSE agenda, be it
competitors or a simple lust for power or to be seen as a public figure. Most of
these people constantly work to discredit and close down the WSE where ever
possible which is obviously why WSE never participated. Once again they've shown
themselves to have no idea about the situation and yet they make such
allegations as the ones below. It was made clear that HCL announced the deferred
HCB bond interest payment decision weeks before Midas Group informed them of
being bankrupt.

SLReports.net User - What a crock.

|2007-11-13 03:55:09

Does the SLEC even exist? Crap impossible to find office. No one there (EVER)
and whats the go with the website? Nothing works, I bet the members have been
jipped into appearing on that stoopid list.
Looks like a soap box for the
exchanges to bash each other.
I am a member, and I wish I wasnt...and theres no
way to get off that list. Crap. And when did they vote? Who voted? Ancapex and
SLCapex?
Bah. Can anyone say "cash for comment"?

SLReports.net User

|2007-11-13 00:57:46

from all exchanges nutty

SLReports.net User

|2007-11-13 00:13:28

and the members of SLEC are ?

SLReports.net User

|2007-11-12 23:51:51

In response to the previous remark - what does SL Capital Exchange have to do
with this story?? Can you not read... SLEC

SLReports.net User

|2007-11-12 23:21:25

SL Reports seems less and less impartial with SL Capital Exchange as main
shareholder ........

Is competition so hard?!

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Last Updated ( Monday, 12 November 2007 )

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SLEC calles for companies to delist fromWorld Stock Exchange after HCB/Midas Saga

3.26 Copyright (C) 2008 Compojoom.com / Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."

SLEC calles for companies to delist from
World Stock Exchange after HCB/Midas Saga