"Association, of itself, is neither a breach of the Corporations Act nor unacceptable. Association is simply the basis for aggregating relevant interests held by different people to determine voting power. However, an acquisition of a relevant interest may be a breach, and the formation of an association may be unacceptable if such an acquisition, or formation of association, causes a person’s voting power, or control of a company, to increase either in breach of section 606, or gives rise to unacceptable circumstances."
However, even without a breach of s606, the aggregation of voting power in the context of a bid or potential bid, if not disclosed, is of serious concern to the legislature.
Austral Coal Limited 02(RR) quoted Fullager J to make this point:
"If an intending raider amasses a large parcel of shares secretly, then he does so in a manner ipso facto at odds with the strong policy of the legislation, because a large number of shares are transferred in a market which is not sufficiently informed.
It is for instance, part of the policy of the legislature, albeit incidentally, to oppose the secret buying and hoarding of shares for the purpose either of “spring-boarding a take-over” or of selling out at a large profit to some other raider provoked by the first secret buyer...."
And this bit...
"Leading Pride is owned by Ms Olivia Yu, who is also a director of Cell Therapy Technologies Centre Ltd (CTTC)" Gues who was a director...yep...Mr Luk! Guess who now ownes CTTC...yep Mr Luk. WNI...again Mr Luk BRM...wow...Its Mr Luk again. Under investigation....Guess who...Mr Luk.
Anyway..read it for yourself. Its like a good book...it just gets better as you read further down.
BRM Price at posting:
$2.06 Sentiment: Buy Disclosure: Held
