I've been looking at the Corporations Act 2001 - Chapter 2E—Related party transactions
It's not very clear and 'arm's length' is not defined so it looks murky to me.
It's one thing to not have directors with conflicting interests voting but there are still 3 independent (cough) board members (including an independent chairman with 2 votes) that can vote in favour of for example a supply agreement.
These is an ASIC Regulatory 76 guide if you want to have a browse.
download.asic.gov.au/media/1239851/rg76-published-11-may-2011.pdf
It goes into member approval process under Ch 2E so how this would apply to Flinders Mines I guess would depend on whats proposed and therefore might need legal advice for minority shareholders if the terms look unfavorable.
It would be helpful if posters could reference previous class actions rather than personal opinions unless of course they are legal eagles so us minority shareholders can get a handle for what may be coming.
FMS Price at posting:
7.8¢ Sentiment: Hold Disclosure: Held
