apj if they dont disclose material facts that effect the market, the asx can punish them as individuals.
If production has not been up to scratch and they could have predicted the outcome or stalled the news with a view to raising capital before the market reacted there could serious consequences.
That might actually be a grounds for litigation. If a directors sits on a material fact so the share price stays higher and they execute a capital raising. Those who took part in the raising might be able to get a refund for shares they purchased.
I know that an industrial stock last year was threatened with litigation because they didnt announce a profit downgrade.
Sometimes boards get so involved in raising cash at a high price and forget their obligations of disclosure which often clash with the need to raise capital.
This often happens because the need to raise capital arises due to problems they prefer the market not know until they have the cash to deal with the issues.
RMS Price at posting:
$1.01 Sentiment: ST Sell Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)