Australia's largest stock trading and investment forum Australia's #1 stock forum

SP1

0.00%

$1.07 southern cross payments ltd

ASIC v ISX Hearing, page-122

First 122 Last

Share
Profile

Follow
sharerunner

42 Posts.

59

01/03/23

18:04

Post #: 66544891
Share

Originally posted by naomhan: ↑

ill take you as being genuine here. I was answering why ASIC would pursue a company despite it harming the shareholders. The answer is the integrity of the entire system.

ASX suspended us, not ASIC. We've since found out that both ASIC and ASX were investigating following the company meeting performance milestones in a questionable manner that made the directors very rich. About a third of the current shares on issue are the result of this. Thats not something that could happen to a big 4 bank.

Visa wasnt anything to do with the suspension. They are to do with ASIC suing the company and the directors. Visa wasnt related to the ASX suspension.

For the record, the two cases are/were:
- ASIC suing ISX for lying to investors and the directors intentionally acting against the interests of shareholders to gain hundreds of millions of dollars of performance shares ($300m worth at last trade - obviously a lot less now). That's the one currently on trial.

- ISX sued ASX for the suspension. During this time, the company:
1. upped their claim to about half a billion dollars,
2. claimed multiple times that discovery had turned up huge and astounding evidence of ASX doing the wrong thing. Treasure trove is the term JK liked. He used this victim angle to:
3. get us to move the company to Cyprus, where he can't be touched by ASIC, with the promise that we'd relist on another major exchange as soon as possible.
4. Went back on that. Listing is now "not a good idea" and is a vague idea for the future.
5. Kept spouting info about the treasure trove of discovery and the amount of money we were all going to get, but delayed the court case until
6. We got to the AGM where he got re-elected for more years (3 I think), still telling us about the treasure trove of evidence against ASX
7. And then, a week or two after his re-election, told us that a half-billion dollar pay day wasn't worth the effort and the company dropped the case against the ASX. Literally walked away from it.

Expand

All good points.

Why is ASIC suing ISX and not investigating and suing the directors directly. Excuse my ignorance in this matter. Presumably the performance shares could have been dissolved and new directors found? Or does the company have to be completely destroyed?

The other thing that bugs me is there was no issues when the performance shares were issued and worth significantly less. it was only when the company started to perform that ASX then later ASIC got upset.

Also I thought that directors and related entities owned 500mil shares. Not that this helps ISX case.
9 Upvote

1 Great analysis

Reply

Top Stories

Bitcoin jumps 8% to beat record on Trump vote optimism

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

SI6

Nanocap Si6 Metals to kick off drilling at Monument gold project WA, chasing past hits

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

LRD

Lord picks up high-grade copper play in Western Australia, with past intercepts of up to 6.62%