Auction Floor Concerned Shareholder Letter to the Board of Directors
Shareholder Meeting Adjourned Until September 10, 2008 at Scottsdale Location.
PR9.NET September 02, 2008 - Scottsdale, AZ - The Concerned Shareholders of Auction Floor, Inc. (Other OTC: AFLO.PK)(Frankfurt:ZUI.F). The following open letter has been submitted to Auction Floor, Inc. Board of Directors on September 2, 2008.
Board of Directors, Auction Floor Inc.
Mr. John Chaloner
Mr. Ron Erickson
Mr. Lou Sagar
Tuesday, September 02, 2008
This email is to inform you that the Calling Shareholders presently have in hand proxies representing 40.5% of total voting shares. This contrasts starkly with the lesser figure of 22% which Mr. Sagar has been publicly misstating to have been submitted. Incidentally, this total constitutes 51 voting shareholders out of 425 active holders as at the record.
Your public misstatements have been duly noted and shall be addressed at a suitable time by the appropriate authority.
At present, we anticipate receipt of proxies representing an additional 8% of the total voting shares. As we are in active communication with all shareholders, we are confident that we shall achieve the quorum necessary to vote on the resolution before the Shareholders at the Special Meeting which you have correctly noted as having been adjourned last week.
The Calling Shareholders initiated this process because a significant number of the Company's shareholders became concerned that Mr. Sagar's actions to date had resulted in a precipitous decline in shareholder value and whose actions left unchecked could result in the total loss of each shareholder's investment in the Company. Further, the Calling Shareholders have sought the removal of Mr. Sagar given numerous instances of financial malfeasance, as noted by the independent auditor, and his blatant self-serving behavior - all at the expense of the Company and its shareholders.
Mr. Sagar, for once, we implore you to please place the interests of the Company and its shareholders ahead of your own, and resign immediately.
Mr. Sagar's wanton disregard for proper corporate governance procedure as evidenced by his willful efforts to prevent shareholders from exercising their rights to review the books and records of the Company and to participate in the Special Meeting is a breach of his fiduciary and moral duties as Chief Executive.
Mr. Sagar's negligence and inexperience in administering the Company's affairs has contributed significantly to the decline in the Company's stock price (a decline in excess of 85% as of this date) since he assumed his position as Chief Executive.
Stock performance is a reflection of Mr. Sagar's performance, it is that simple. Mr. Sagar's past career as a cash-business, knick-knack retailer obviously taught him nothing about corporate finance.
In examining Mr. Sagar's past accomplishments, we thought it only prudent to do the same for Mr. Erickson. In his case, we are even more impressed with Chairman Erickson's recent (mis)adventures with Blue Frog which has been so ably reported on by Business Reporter, Mr. John Cook .
We trust and hope that the Board of Directors will accept the inevitability of the passage of the current resolution before the shareholders, and consider the shareholders' interests ahead of their own.
THE CALLING SHAREHOLDERS
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About Auction Floor, Inc.
We are concerned shareholders of Auction FLoor, Inc. that seek the removal of the current Board of Directors and management of the Company.
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