SC Fundamental

Complaint in Daniel Ashman, Brad Booth, Thomas Koral, Greg Lavery, Dave Lizmi, Daniel Smith, Joseph Sanders, and Dustin Woolf v. 6356095 Canada, Inc., f.k.a. Excapsa Software Inc., at the U. S. District Court for the Central District of California.

Although John Head controls 42% of the stock of one of Bermuda's worst-run companies, ESG Re, he is held in such low regard by other shareholders that he still cannot get resolutions passed.The specialist reinsurer he founded announced on March 9, 2006 that a special shareholders meeting had been held in New York two days earlier. “The meeting was requisitioned by John C Head III, the Company's former Chairman, and his affiliated entity, ESG Partners L.P., to consider seven resolutions pertaining to amendment of the Company's byelaws,” stated the firm. “Of the 11,058,069 shares outstanding, 7,443,833 were represented in person or by proxy at the meeting. Mr. Head and ESG Partners L.P. voted their shares but did not attend the meeting to present their proposals. All of the proposals were defeated.” The firm did not give any details about what the proposals entailed.

One of the major shareholders of Bermuda-based ESG Re has accused the company's chairman, John Head III, of overpaying himself while simultaneously ruining the company through mismanagement. The criticism of Head came in a letter from private investment management firm SC Fundamental LLC to the ESG Re's Board of Directors.