MMR - The ALP will lose the new PEP11 court case, page-651

Ok ok... this has gone on long enough. Let pupper Flambeau put to rest this debate... I had fun over the last few months watching a debate and argument between users I never thought would happen, I had much entertainment, but Flambeau is involved now, so things need to be factual as we get ready for PEP-11 to get back on track.

Here is the lay of the land:

• “1.3.4 … (b) It must be a *pooled development fund and have net tangible assets of at least $2 million after deducting the costs of fund raising.” https://www.asx.com.au/documents/rules/Chapter01.pdf
• "1.3.2.... (a) less than half of the entity's total tangible assets (after raising any funds) must be cash or in a form readily convertible to cash; or..." https://www.asx.com.au/documents/rules/Chapter01.pdf

If you read these two lines of rules in context, you will discover: this applies "at the time of admission".

source: extract from https://www.asx.com.au/documents/rules/Chapter01.pdf

Both rules are under the subheading of "The assets test"... (for admission).



Next is the "active investment" threshold. This is assessed at the end of every year. If you really want to know... it is assessed during the submission of the next compliance report to the Innovation and Science Australia (ISA).

MEC Resources Ltd (ASX:MMR) is required to submit annual compliance reports to Innovation and Science Australia (ISA) as part of its obligations under the Pooled Development Funds (PDF) program. These reports detail the company's investments and confirm adherence to the PDF Act 1992, including maintaining investments in eligible small and medium-sized enterprises (SMEs).The specific deadline for MEC's next report to ISA depends on the company's financial year-end. Typically, such reports are due within a set period after the end of the financial year, often within 3 to 6 months. For example, if MEC's financial year ends on June 30, the report would likely be due by December 31 of the same year.

If the court case goes into 2026, things would be a bit dubious... but considering the election and the lack of focus of the Federal Government on this case (to defend it), I don't see this case going into 2026. Although if it does, it will be a double edge sword, because that means Flambeau will get his hands on the court case documents which would be Earth shattering for the Federal Government. The Federal Government do not want Flambeau to get the court case documents. I agree with Justadabble, that the Government will likely concede at the latest possible time, ~20-30days before trial.