class action and compensation plan, page-7

Hi Legin7777,

Shareholder5 has mentioned a few- some other potentials based on misleading information or not keeping the market fully informed:

1. Quarterly and company updates provide the impression that the (Group not just CCLSA) was cash flow positive and making profits. There is also no mention of economic ownership providing the impression that all profits are attributable to CCC. We now know this is not the case because as it is only with the release of the Statutory accounts where consolidated results are provided that the true financial position is known. How about the half year result- they led a marketing effort talking up how the group was making profits and ready for growth yet 6 months later a loss of $51m is recorded-how competent is that!! This begs the question about the Board having their finger on the pulse. A new CFO appointed but much to late.
2. It was only recently at the AGM that the true state of affairs of the Group became known and this was made available only to those who attended the AGM or were lucky enough to obtain a copy of the recording of the AGM. The liquidity issues mentioned at the AGM were not as far as I am aware released to the general market until today via financial results.
3. How about the SIOC deal - I cannot recall reading any official releases that suggest that the $17m cash had to stay in South Africa. I do recall official releases suggesting that the funds would be used to progress projects in South Africa but to the effect that CCC Australia is starved of funds to the point of being near broke? The so called strength of SIOC, appointments to the board and arrival of funds was no doubt one of the major reasons many invested.
4. Funding- ABSA funding availability was heavily marketed providing the impression of how strong the Group was financially - but where was an ASX update when things changed?
5. I recall a hotcopper post early August by Volcano on the KAB forum. http://hotcopper.com.au/post_single.asp?fid=1&tid=1799855&msgid=10463674.
In this post an email from Jason Brewer was copied saying that CCC was in a very strong financial position. Yet the AGM only a few weeks later told a much different story.
6. Vanmag sale – in particular ASX release 9 May 2011- Irrevocable bank guarantee- 18 months later?

cheers