Ann: Appointment of voluntary administrator , page-56

Hi Nb and the rest.

Whatever you may have with who did what to whom I think that it would be unlikely that the group supporting the company was not fully aware and informed of the wording and circumstances. He did not need to acquire shares he could have acquired an increased convertible note.

He was not unable to take up but in fact did not take up it seems.

The situation is such that its easily answered - If he has lost faith and does not intend to make an offer to the administrators for either the business or the company than the only question is whether he had or has a legal obligation in regard to some , all or part of the $604,000. I think he is obligated to put the $604,000 into the company because if the undertaking was not made than he should have required the company to issue an updated letter to shareholders.

However if he does intend to purchase the business or the company than I must say I am not that comfortable with any of the events that have happened.

I think that the minority shareholders do have a case that they had been given comfort that whatever happened the company would get its funding. That meant they did not have to seriously weigh up taking shares it was all in the bag.

If there was no undertaking and the offer document is in fact flawed then I am not sure that directors liability insurance does apply as that is gross negligence IMO. You must have at least carried out some due process.

Its not only the inducement to put money in its also the assurance that the full amount will be raised and therefore the company's continuation is secure. Its a double edged sword.

Only a very small holding.